Gold prices declined on Monday, influenced by easing U.S.-China trade tensions and a strengthening U.S. dollar, which reduced the appeal of the precious metal as a safe-haven asset.
Spot gold fell by 0.8% to $3,292.43 per ounce, retreating from its record high of $3,500.05 reached on April 22. The U.S. dollar index rose by 0.2%, making gold more expensive for holders of other currencies and further pressuring prices.
The decline in gold prices follows optimistic signals from both Washington and Beijing regarding trade relations. U.S. President Donald Trump indicated ongoing tariff discussions with China, while Beijing responded by exempting some U.S. imports from tariffs, despite downplaying claims of active negotiations.
In India, MCX Gold June futures were trading at ₹94,934 per 10 grams, down by ₹58 or 0.06%, as of 10:43 AM IST.
Experts have highlighted key technical levels for MCX Gold. According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at ₹94,450-94,080, while resistance is seen at ₹95,650-96,090.
Investors are now focusing on upcoming U.S. economic data releases, including job openings, personal consumption expenditures, and non-farm payrolls, which are expected to provide further insight into the Federal Reserve’s monetary policy outlook.
As global economic indicators evolve, market participants will closely monitor geopolitical developments and currency movements to assess their impact on gold prices in the coming weeks.
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