Gold Slips On MCX As Dollar Firms And US-Iran Talks Stall Ahead Of Fed Decision

Gold had a quiet but negative start to Tuesday. Prices drifted lower on the Multi Commodity Exchange of India (MCX) as the dollar held firm and diplomatic progress between the United States and Iran remained nowhere in sight. With a packed central bank calendar ahead, most traders were sitting on their hands.

MCX gold June futures were down 0.08% at ₹1,51,605 per 10 grams as of 10:15 AM. Silver May contracts dropped 0.55% to ₹2,40,503 per kg.

Why Gold Is Under Pressure

The dollar has picked up strength on the back of rising inflation concerns, which reduce the case for near-term interest rate cuts. When rates stay higher for longer, yield-bearing assets like bonds become more attractive and gold loses some of its appeal. That logic has been playing out in the price action through the morning session.

The diplomatic front is not helping either. A Reuters report citing a US official said President Donald Trump is dissatisfied with Iran's latest proposals, specifically because they did not address Tehran's nuclear programme.

Iran responded by saying it will not reopen critical shipping routes unless the United States ends its blockade and stops the war. Separately, Iran's Foreign Minister Abbas Araghchi said the strategic partnership between Iran and Russia has deepened following recent engagement with Russian leadership, adding another variable to an already complex situation.

A Big Week For Central Banks

Gold rarely moves in isolation from interest rate expectations, and this week has four major central bank decisions landing in quick succession.

The US Federal Reserve is likely to keep interest rates unchanged on Wednesday, 29 April. The Bank of Japan is set to announce its policy decision today. The European Central Bank and the Bank of England will share their decisions on 30 April.

Any shift in tone, particularly from the Federal Reserve, could move gold meaningfully. Until those decisions land, the market is unlikely to take a strong directional view.

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Levels To Watch

For the current session, analysts flag these key levels:

Gold per 10 grams (MCX)
Support: ₹1,50,800 and ₹1,50,000 Resistance: ₹1,53,500 and ₹1,54,200

Silver per kg (MCX) Support: ₹2,38,800 and ₹2,35,000 Resistance: ₹2,44,400 and ₹2,47,700

International Levels Gold support stands at $4,681 and $4,640 per troy ounce, while resistance is seen at $4,724 and $4,770. Silver support is placed at $74.40 and $72 per troy ounce, with resistance at $76.20 and $78.

Source:

Mint

Outlook Money