Indian Rupee Opens Strong; Gold Prices Edge Higher

The Indian rupee appreciated by 12 paise to open at 85.44 against the US dollar today amid positivity in the global economy and market. The domestic currency closed at 85.52 on Friday, May 16. Gold prices surged by 1% in the morning trade on the back of weakening dollar and Trump-led tariff pressure.

MCX Gold June 5 was up by 0.95% at ₹93,317 per 10 grams in the morning trade. On the other hand, the dollar index slipped by about 0.3%, giving a boost to the yellow metal. Surge in the US dollar makes the gold cheaper in other currencies, enhancing its demand.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has a support at $3,195-3,175 and resistance at $3,245-3,260, while silver has support at $32.10-31.80 and resistance at $32.65-32.85.

He said, “Gold prices climbed above $3,220 per ounce on Monday, rebounding from last week’s steepest decline in six months. The recovery was fueled by renewed safe-haven demand after Moody’s downgraded the US sovereign credit rating, citing fiscal imbalances and rising debt costs.”

“In INR, gold has support at Rs 91,850-91,480 while resistance at Rs 92,850-93,490. Sliver has support at Rs 94,480-94,850 (per kg) while resistance at Rs 95,950-96,650,” he added.

Gold price fluctuated in the last two sessions due to lack of positive cues.

However, gold prices in India are expected to remain elevated ahead of the upcoming wedding season, thereby limiting any downside, said Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA).