Gold Prices Plummet on MCX
Gold prices on the Multi Commodity Exchange (MCX) have taken a significant hit. 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.
Key Statistics:
- Drop in Price: ₹7,347 decrease from the peak
- Current Price: ₹92,480 per 10 grams
- Next Support Level: ₹89,500, potentially leading to further declines toward ₹85,000 if breached
Global Market Trends:
- Spot Gold: Closed at $3,210.19 per ounce on May 16, down 0.9% for the day and over 3% for the week
- COMEX Gold: Traded at approximately $3,216.30 per ounce on May 16
Market Drivers:
- US-China Trade Truce: Easing tensions have spurred investor risk appetite, shifting focus 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
- Federal Reserve’s Stance: No immediate interest rate cuts, reducing urgency for investors to seek gold as an alternative investment
Outlook:
Analysts suggest that easing 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
