Gold Prices Fall Nearly 1% Amid Stronger Dollar, Easing Tensions: What Should Investors Do on MCX?

Geopolitical calm and a stronger US dollar push gold prices lower for a second session, with MCX gold trading below ₹92,000. Analysts advise caution and selective accumulation.

May 15, 2025: Gold prices continued to slide on Thursday, with MCX Gold June futures falling by 0.70% to ₹91,615 per 10 grams in early morning trade, extending losses from the previous session. On Wednesday, gold had already plunged 1.48%, closing at ₹92,265 per 10 grams.

The decline in domestic gold rates follows a broader global trend, triggered by a strengthening dollar and easing geopolitical tensions — particularly between India and Pakistan — as well as progress in US-China trade talks, which have dampened safe-haven demand.

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Why Are Gold Prices Falling?

According to Manoj Kumar Jain, Head of Commodity Research at Prithvifinmart, both gold and silver gave up recent gains due to reduced market fear:

“Easing safe-haven demand amid US-China trade progress and easing global tensions prompted risk-on sentiment, pushing investors away from bullion.”

Silver July futures also declined 1.34%, settling at ₹95,466 per kilogram.

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Global Drivers Behind the Decline

• Stronger US Dollar: A rising greenback traditionally makes gold more expensive for foreign investors.
• Easing India-Pakistan Conflict: After the ceasefire, risk perception in South Asia has decreased.
• US-China Trade Optimism: Talks hinting at tariff reductions shifted investor focus from gold to equities.

Also Read: China Blasts US-UK Trade Pact, Labels Security Clauses ‘Poison Pills’ Targeting Beijing

Expert Strategy for MCX Gold Investors

Jain recommends a cautious strategy for short-term traders and investors.

“Key support is seen around ₹91,300–₹91,400 per 10 gm. A break below this could open room towards ₹90,800 levels. On the upside, ₹92,400 will act as immediate resistance.”

He advises long-term investors to accumulate in dips, while short-term traders can adopt a sell-on-rise approach until stability returns to geopolitical narratives.

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