Gold price falls as US tries to defuse tension with Iran

Gold prices were trading marginally lower, tracking bearish trend from abroad, following remarks by the US President Donald Trump offering to embrace peace with the Iranian leadership, in a bid to de-escalate tensions in the Middle East.

Tracking losses in international spot prices, coupled with an appreciation of the rupee against the US dollar and stabilised oil prices, gold prices in India were trading lower at Rs 40K level today.

Internationally, Spot gold dropped nearly 1% to $1,559.22 per ounce.

On the MCX, gold contracts for February were trading lower by Rs 18, or 0.04%, at Rs 40,092 per 10 gram today. It made an intraday low of 40,036.00 and high of 40,144.00 today.

As per MCX, gold futures' resistance level stood at 41,330, 42,034 and 42,701, while the recent support levels were at 39,959, 39,292 and 38,588.

In a similar trend, silver futures on MCX today fell 0.46% or Rs 216.00 to Rs 47,175 per kg.

After falling 5% overnight from $71 a barrel on Wednesday, oil prices grew marginally today, with Brent crude futures rising 55 cents, or 0.8%, to $65.99 a barrel.

On the contrary, the Indian rupee advanced 22 paise to 71.48 per US dollar.

Globally, equity indices rebounded after US President Donald Trump said Washington did not necessarily have to respond to Iranian attacks at American military bases in Iraq and offered to embrace peace with Iran.

By Rupa Burman Roy

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