Gold price rise: Gold rebounds in last session of Q1, where is the yellow metal headed?

Gold price today: Prices of gold rebounded in the last session of the first quarter on Monday. The yellow metal slipped nearly Rs 1,500 per 10 gm intra day on Friday. In the current session, price of gold gained by Rs 550 per 10 gm to Rs 96,014 on MCX. Gold price gained as global markets excluding the US traded mostly lower on Monday. Sensex ended 452 pts lower at 83,606 and Nifty closed 121 pts lower at 25,517. 

Hang Seng slipped 212 pts to 24,072 and Taiwan Weighted Index closed 324 pts lower at 22,256. 

The prices of gold have an inverse relation to those of equities. When equities fall, gold price rises and vice versa. 

In the current session, risk sentiment increased with a fall in equity market. Subsequently, investors flocked to the yellow metal considered as a safe haven. The precious metal's performance underscores its pivotal role in providing security for investors during times of instability. 

A weak dollar also pushed the prices of gold higher. The dollar index was down 0.17% to 97.24 on Monday 

On June 16, gold rates on MCX reached a record high of Rs 1,01,078. The yellow metal has lost 5% since then. 

Of late, gold prices were on a decline after US President Donald Trump announced that Iran-Israel war had ended. 

Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures said, "Gold surged today, with prices holding steady around Rs 97,300 per 10 grams of 24-carat gold, driven by a weaker US dollar and sustained safe-haven demand. While short-term analysts suggest a 'sell on rise' approach around Rs 97,300– Rs 97,400, prices are expected to dip towards Rs 96,200–96,700. However, the long-term outlook remains strong. Global forecasts indicate the potential for prices to climb to 10-12% per 10 grams over the next year, especially if geopolitical tensions persist and central banks continue their buying spree. Despite its appeal as a hedge during economic uncertainty, investors are advised to exercise caution when entering at current elevated levels.”

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold traded with modest gains, rising by 0.40% to $3,290 in Comex and 0.50% to Rs 95,950 in MCX, supported by weakness in the dollar index. The rebound comes after a phase of sharp profit booking observed last week, as investors cautiously return to safe-haven assets. The week ahead is crucial, with a slew of high-impact US economic data, including ADP Non-Farm Employment, Non-Farm Payrolls, and the Unemployment Rate, all of which will provide further direction to gold prices. Gold is expected to trade in a range of Rs 94,000–Rs 97,500 in the domestic market in the near term, with volatility likely to increase as markets react to US labour data and evolving macroeconomic cues in trade tariffs updates."

Rahul Kalantri, VP Commodities, Mehta Equities said, "Precious metals witnessed a sharp correction amid geopolitical easing and global market optimism. The ceasefire between Israel and Iran deflated the war risk premium, triggering a pullback in gold and silver prices. Gold slipped to its lowest level in a month, while silver also declined sharply. Additional pressure came from fading hopes of near-term U.S. Fed rate cuts. However, the downside is being cushioned by dollar weakness and rising tensions in the Russia-Ukraine region. Gold has support at $3264-3245 while resistance at $3315-3335. In INR, gold has support at Rs 95,100- Rs 94,780 while resistance at Rs 95,940-96,450."