Gold Prices Surge Over 1% Ahead of US Fed Meeting; MCX Gold Nears ₹96,000

Introduction

Gold prices have witnessed a significant uptick today, with domestic futures climbing over 1% as investors turn to safe-haven assets ahead of the US Federal Reserve's policy meeting. The surge is attributed to escalating geopolitical tensions and expectations surrounding the Fed's interest rate decisions.

Domestic Market Performance

As of 10:00 AM IST, the MCX Gold June futures contract was trading at ₹96,049 per 10 grams, marking a 1.4% increase from the previous close. The session's high touched ₹96,049, while the low was recorded at ₹95,200 . This rise aligns with global trends, where gold prices have been buoyed by investor caution and a weakening US dollar.

Global Market Trends

Internationally, spot gold prices have surged to a two-week high, driven by renewed safe-haven demand amid investor concerns over US President Donald Trump's new tariff plans and anticipation of the upcoming Federal Reserve policy meeting. Spot gold increased by 0.7% to $3,357.63 an ounce, while US gold futures rose 1.3% to $3,366.10 .

Factors Influencing the Surge

Geopolitical Tensions

President Trump's unexpected announcement of a 100% tariff on foreign films, along with a forthcoming plan to impose pharmaceutical tariffs, has heightened market volatility. These developments have prompted investors to seek refuge in gold, traditionally considered a safe-haven asset during times of uncertainty.

Federal Reserve Meeting

Investors are closely watching the Fed's interest rate decision and Chair Jerome Powell's comments scheduled for Wednesday for guidance on future policy moves. The central bank is widely expected to maintain the current interest rate range of 4.25% to 4.50%. Analysts suggest that dovish signals from the Fed could bolster gold’s rally .

US Dollar and Bond Yields

A weakening US dollar has further supported gold prices. The dollar index (DXY) has softened, making gold more attractive for holders of other currencies. Additionally, fluctuations in US Treasury yields have influenced gold's appeal, with lower yields reducing the opportunity cost of holding non-yielding assets like gold.

Expert Analysis: Key Support and Resistance Levels

Market experts have identified crucial support and resistance levels for MCX Gold:

• Support Levels: ₹94,000 – ₹94,500 per 10 grams

• Resistance Levels: ₹95,500 – ₹96,000 per 10 grams

These levels are critical for traders and investors to watch, as movements beyond these thresholds could indicate further bullish or bearish trends in the gold market.

Investment Outlook

The current surge in gold prices underscores the metal's role as a hedge against geopolitical and economic uncertainties. With the Federal Reserve's policy stance and global trade tensions in focus, gold is likely to remain a favored asset among investors seeking stability.

Gold prices have experienced a notable increase today, driven by global uncertainties and investor anticipation of the US Federal Reserve's policy decisions. As MCX Gold futures approach the ₹96,000 mark, market participants should monitor key support and resistance levels to inform their investment strategies.

Key Takeaways:

• MCX Gold June futures rose over 1% to ₹96,049 per 10 grams.

• Global spot gold prices reached a two-week high amid safe-haven demand.

• Geopolitical tensions and the upcoming US Federal Reserve meeting are primary drivers.

• Experts highlight ₹94,000 – ₹94,500 as support and ₹95,500 – ₹96,000 as resistance levels.

• Gold continues to be a preferred asset amid economic and political uncertainties.