Gold Prices Dip Amid Easing US-China Trade Tensions; Key MCX Levels Highlighted by Experts

Published: May 14, 2025

Gold prices witnessed a decline on Wednesday as easing trade tensions between the United States and China reduced the metal's appeal as a safe-haven asset. This shift in investor sentiment has led to profit booking in both international and domestic markets, with experts highlighting critical support and resistance levels for traders.(The Economic Times, The Times of India)

International Gold Market Trends

In the global market, spot gold fell by 0.7% to $3,226.11 per ounce, while U.S. gold futures decreased by 0.6% to $3,229.50. The decline is attributed to the recent U.S. decision to reduce tariffs on low-value Chinese shipments and ongoing trade negotiations, which have contributed to market optimism and diminished gold's safe-haven demand.(Reuters)

Analysts suggest that continued progress in trade deals could push gold to critical support levels around $3,200. Additionally, U.S. inflation figures showed the consumer price index rose by 0.2% in April, below expectations of 0.3%, prompting traders to await Thursday’s Producer Price Index for further insight into Federal Reserve policy. (Reuters)

Domestic Gold Market Overview

In India, gold prices mirrored the global trend, with June futures on the Multi Commodity Exchange (MCX) trading at ₹93,195 per 10 grams, registering a drop of ₹452 or 0.48%. Silver July futures also traded lower by ₹704 or 0.73%, settling at ₹96,063 per kilogram.(The Economic Times)

The dip follows a period of upward momentum in precious metal prices as investors responded to signals of stabilizing inflation. The recent decline is seen as a result of profit booking by investors capitalizing on previous gains.(The Economic Times)

Expert Analysis: Key Support and Resistance Levels

Market experts have identified crucial support and resistance levels for MCX Gold, providing guidance for traders navigating the current market volatility.(mint)

According to Manoj Kumar Jain, Gold has support at ₹93,150-92,660 and resistance at ₹94,000-94,450. Silver has support at ₹96,000-95,350 and resistance at ₹97,400-98,200. (The Economic Times, mint)

Rahul Kalantri, VP of commodities at Mehta Equities, notes that in rupee terms, gold has support at ₹92,250-91,780, while resistance is at ₹93,350-93,790. Silver has support at ₹94,380-93,550 while resistance is at ₹95,950-96,750. (mint)

Market Outlook

The easing of US-China trade tensions has led to a shift in investor sentiment, reducing the demand for gold as a safe-haven asset. However, ongoing geopolitical uncertainties and economic indicators continue to influence market dynamics.(MarketWatch)

Analysts advise traders to monitor key economic data releases, such as the upcoming Producer Price Index, which could provide further insight into the Federal Reserve's policy direction and impact gold prices.(Reuters)

While the current trend shows a decline, the long-term outlook for gold remains influenced by a complex interplay of global economic factors, and investors are encouraged to stay informed and exercise caution in their trading strategies.