Gold price today: Rates decline on profit booking amid focus on Israel-Iran war, US Fed policy decision

Gold price today: Gold rates declined in the domestic futures market on Tuesday (June 17) morning due to profit booking at higher levels, as investors remained focused on developments surrounding the Israel-Iran conflict and the upcoming US Federal Reserve monetary policy decision on June 18. MCX Gold August 5 contracts traded 0.24 per cent lower at ₹98,940 per 10 grams. In the previous session, the MCX Gold August contract hit a record high of ₹1,01,078 per 10 grams but ended the session with a loss of over 1 per cent.

As per reports, US President Donald Trump left the Group of Seven (G7) summit a day early on Monday as the conflict between Israel and Iran intensified and the US leader declared that Tehran should be evacuated “immediately.”

Meanwhile, China has warned that the Iran-Israel war may spiral into a bigger regional conflict.

“If the conflict between Israel and Iran continues to escalate or even spill over, the other countries in the Middle East will inevitably bear the brunt,” Bloomberg reported Chinese Foreign Ministry spokesman Guo Jiakun saying on Monday.

While Israel-Iran tensions remain the key factor in gold prices, the focus is also on the US Federal Reserve policy outcome on June 18.

The US central bank is expected to keep rates unchanged, but the Fed Chair Jerome Powell’s commentary on the economy and inflation trends will influence market sentiment.

What should investors do?

Experts say gold’s medium-to-long-term growth prospects remain bright. However, at the current juncture, investors may consider booking some profit.

“With gold in India trading at more than ₹1 lakh per 10g and having rallied sharply in recent months, it’s only right that investors wonder whether they should buy more or book some profit. The advice is: booking partial profits if you are overweight or need cash,” said Renisha Chainani, the head of research at Augmont.

“Buy on dips through SIPs or digital gold if you are under-invested. Don’t chase in with more fresh money right now at record highs unless you are a long-term investor. Balanced strategy wins in this market,” said Chainani.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,380-3,355 while resistance is at $3,425-3,442. Silver has support at $35.95-35.60 while resistance is at $36.65-36.85.

In INR terms, gold has support at ₹98,620-98,390 while resistance is at ₹99,750-1,00,240. Silver has support at ₹1,05,850-1,04,950 and resistance at ₹1,07,200-1,07,950.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $3,400-3,374, while resistance is at $3,445-3,468 per troy ounce, and silver has support at $36.10-35.80, while resistance is at $36.74-37.10 per troy ounce in today’s session.

He sees support for MCX Gold at ₹98,550-97,700 and resistance at ₹99,800-1,00,400, while silver has support at ₹1,05,800-1,05,000 and resistance at ₹1,07,200-1,08,000.

“We suggest buying silver on dips around ₹1,05,800 with a stop loss of ₹1,04,750 for the target of ₹1,07,000-1,07,700,” said Jain.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.