Gold price today: Rates crash over 1% as dollar strengthens; experts say watch these key levels for MCX Gold

Gold price today: Gold rates suffered a significant loss of over one per cent in the domestic futures market on Monday morning, primarily due to the strengthening US dollar after President-elect Donald Trump signalled a potential trade war against BRICS nations, including India.

MCX Gold for February 5 traded 1.02 per cent lower at ₹76,339 per 10 grams around 9:20 am.

Trump has vowed a 100 per cent tariff on BRICS countries if they make any move to replace the US dollar and sought a commitment from the nine-member group that includes India, Russia, China, and Brazil.

"US President-Elect Donald Trump has threatened to impose 100 per cent tariffs on BRICS nations, including India, if they proceed with developing or adopting a new currency to replace the US dollar in international transactions. This development has boosted the dollar index, exerting downward pressure on gold prices," said Sugandha Sachdeva, Founder of SS WealthStreet.

"The move is a significant blow to the global de-dollarisation drive, which seeks to reduce reliance on the US dollar in international trade. This presents a key headwind for gold in the near term, as a stronger dollar typically makes the precious metal less attractive to investors," Sachdeva said.

Barring a few occasions of profit booking, the dollar has been rising since Trump clinched the US elections. This is because of expectations of Trump's tax and trade policies that could strengthen the US economy and currency. Since gold is traded in the US dollar globally, its rise makes the yellow metal expensive in other currencies, denting its demand.

In international markets, Reuters reported that gold prices snapped a four-session rally to fall on Monday, pressured by a firmer US dollar and profit-taking.

Investors have now shifted their focus to key US economic data, including the US job openings, the ADP employment report, and the payrolls report, for cues on the Federal Reserve's monetary policy. Comments from several Fed officials this week, including Fed Chair Jerome Powell on Wednesday, will also be on investors' radar.

The yellow metal dropped over 3 per cent in international markets in November, marking their worst monthly performance since September 2023. In the domestic spot market, gold prices declined almost 4 per cent in November.

Experts highlight key levels for MCX Gold

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support levels at $2,622-$2,610 and resistance at $2,650-$2,664. Silver has support at $30.15-$29.90, with resistance at $30.60-$30.75. In INR terms, gold has support at ₹76,180- ₹75,950, while resistance lies between ₹76,570- ₹76,840. Silver has support at ₹88,150- ₹87,550, with resistance at ₹89,450- ₹90,080.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $2,664-2,650, while resistance at $2,700-2,714 per troy ounce and silver has support at $30.80-30.55, while resistance is at $31.40-31.70 per troy ounce in today’s session.

"On the MCX, gold has support at ₹76,850-76,600 and resistance at ₹77,440-77,720 while silver has support at ₹90,450-89,600 and resistance at ₹92,000-92,800," said Jain.

Jain suggests buying gold on dips around ₹76,850 with a stop loss of ₹76,550 for the target of ₹77,440.

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