New Delhi, May 19
The Indian rupee opened 12 paise stronger at 85.44 against the US dollar on Monday, amid a backdrop of global economic developments and market reactions.
The Indian rupee closed at 85.52 a dollar on Friday.
Meanwhile, gold prices increased almost 1 per cent in the morning session of trade on the domestic futures market on Monday, amid a weaker dollar and renewed fears of Donald Trump-era trade tariffs.
MCX Gold June 5 contract traded 0.95 per cent higher at Rs 93,317 per 10 grams in the morning trade. Meanwhile, the dollar index declined nearly 0.3 per cent, supporting gold prices. A decline in the US dollar makes gold cheaper in other currencies, enhancing its demand.
Rahul Kalantri, VP of commodities at Mehta Equities, said that gold has support at $3,195-3,175 and resistance at $3,245-3,260. Silver has support at $32.10-31.80 and resistance at $32.65-32.85.
“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,” he mentioned.
Despite recent optimism from a temporary US-China tariff truce, weak US economic indicators and subdued inflation have led markets to price in additional interest rate cuts by the Federal Reserve, offering further support to bullion.