Gold Price Drops Amid US-China Trade Deal Hopes; Key MCX Levels Revealed

Mumbai, June 10, 2025: Gold prices in the domestic futures market dipped on Tuesday morning, as investor sentiment turned positive on the hopes of a successful US-China trade talks.

At 9:20 AM, MCX Gold August 5 contracts were trading 0.72% higher at ₹96,475 per 10 grams, despite an overall trend of easing rates due to potential breakthroughs in international negotiations between the two countries.

US-China Trade Talks Influence Market Sentiment

Market sentiment turned positive on Tuesday as top officials from the United States and China began the second day of negotiations in London, with US President Donald Trump indicating that positive developments were underway. Ongoing talks are now playing a larger role in driving commodity prices, taking the spotlight away from concerns such as the Russia-Ukraine conflict.

At the same time, markets are closely watching the US inflation data due on Wednesday, as it could shape the Fed’s interest rate stance. Additionally, Thursday’s US bond auction may impact gold prices, particularly if investor demand proves to be low.

Support and Resistance Levels for Gold and Silver

Analysts expect heightened volatility in gold and silver this week, driven by the movement of the dollar index and global uncertainties.

USD Support/Resistance:

• Gold:
  • Support: $3,280–$3,310
  • Resistance: $3,325–$3,400
• Silver:
  • Support: $35.80–$36.50
  • Resistance: $36.75–$37.40

INR Support/Resistance (MCX):

• Gold:
  • Support: ₹96,180–₹96,720
  • Resistance: ₹97,350–₹98,200
• Silver:
  • Support: ₹1,04,800–₹1,06,160
  • Resistance: ₹1,08,000–₹1,09,650.

Future Strategy Outlook

Gold prices are expected to remain volatile this week, influenced by the US-China trade talks and key US inflation data.  Traders should closely monitor global cues and dollar movements before taking fresh positions.

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