CHENNAI: Gold prices on the Multi Commodity Exchange (MCX) have experienced a significant fall. The June 2025 gold futures closed at ₹92,480 per 10 grams on Friday, marking a 7.4% drop from the all-time high of ₹99,358 reached earlier this year. This represents a ₹7,347 decrease from the peak
Technical analysts suggest that if prices remain below ₹94,000, the next support level could be around ₹89,500. A sustained break below this level might lead to further declines toward ₹85,000.
Global Market (COMEX & Spot Gold)
Spot Gold: Closed at $3,210.19 per ounce on May 16, down 0.9% for the day and over 3% for the week, marking its worst weekly performance since November 2024 .
COMEX Gold: Traded at approximately $3,216.30 per ounce on May 16. The decline is attributed to easing US-China trade tensions, a stronger US dollar, and the absence of immediate dovish signals from the US Federal Reserve. These factors have diminished gold's appeal as a safe-haven investment.
Market Drivers
US-China Trade Truce: The agreement to temporarily reduce tariffs has spurred investor risk appetite, leading to a shift away from gold .
Stronger US Dollar: The US dollar index is on track for its fourth consecutive weekly gain, making gold more expensive for holders of other currencies and dampening demand.
Federal Reserve's Stance: The Fed's current policy, with no immediate interest rate cuts, has reduced the urgency for investors to seek gold as an alternative investment.
Outlook
Analysts suggest that the easing of global risk concerns and a firm dollar may continue to pressure gold prices in the short term. Technical indicators point to potential further declines if key support levels are breached.