Now the gold rate today on the MCX shows a downward trend. Prices declined during early morning deals on Monday, May 4, 2026. This dip follows a stronger US dollar and shifting geopolitical news. Therefore, investors are watching the progress of the US-Iran peace talks very closely. Meanwhile, high crude oil prices continue to fuel global inflation worries. Currently, gold June futures trade near the ₹1,51,000 mark.
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Morning Market Snapshot: Gold and Silver Dips
Now the commodity market opened with a slight retreat. Gold rate today on the MCX fell by 0.23% by 9:10 AM. Therefore, the June futures settled around ₹1,51,005 per 10 grams.
First, silver July futures also saw a decline. The white metal dropped 0.15% to reach ₹2,50,549 per kg. Next, the slight uptick in the US dollar index pressured bullion prices. Thus, the market is currently in a cautious consolidation phase.
So why are prices falling? Investors are weighing the possibility of a diplomatic breakthrough in West Asia. Meanwhile, the dollar remains the preferred safe haven for some. Therefore, gold faces short-term resistance.
US-Iran Peace Talks: The 14-Point Proposal
Now the geopolitical landscape is shifting rapidly. Tehran recently submitted a 14-point proposal to mediator Pakistan. This plan aims to end the long-standing conflict on all fronts. Therefore, it has brought a glimmer of hope to global markets.
First, the proposal includes a new framework for the Strait of Hormuz. Next, it suggests a complete end to hostilities. Thus, the news has reduced the “war premium” usually attached to gold.
So President Trump commented on the situation Saturday. He mentioned that he will review the proposal thoroughly. Meanwhile, he called the ongoing talks “very positive.” Therefore, the risk of a major escalation seems to be fading.
Trump’s Stance on the Strait of Hormuz
Now the Strait of Hormuz remains a critical chokepoint for oil. President Trump stated that the US would attempt to free stranded ships there. Therefore, he aims to stabilize the global energy supply.
First, crude oil prices eased slightly after this announcement. Next, the lack of a full peace deal keeps oil above $100. Thus, transportation costs remain a major concern for global trade.
So the market is still on edge. Meanwhile, any disruption in the waterway would send gold prices soaring again. Therefore, the peace talks are the primary driver for today’s price action.
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Inflation Fears and Crude Oil Volatility
Now high crude oil prices are fanning fears of a massive inflation flare-up. When oil stays expensive, everything else costs more. Therefore, central banks are forced to keep interest rates high.
First, the PCE Price Index jumped 0.7% in March. This was the biggest gain in nearly four years. Next, higher-for-longer oil prices make inflation sticky. Thus, gold’s role as an inflation hedge is still relevant.
So volatility remains high in both gold and silver. Meanwhile, traders are balancing the cooling war risks against rising living costs. Therefore, the market remains stuck in a tight range.
Federal Reserve Policy and Interest Rates
Now the US Federal Reserve is maintaining a hawkish stance. Last week, officials kept interest rates at 3.5%–3.75%. Therefore, they are not ready to cut rates just yet.
First, the Fed flagged significant inflationary risks. Next, high rates typically make gold less attractive since it pays no interest. Thus, the “higher-for-longer” narrative is a headwind for bullion.
So the market expects no major changes in the next meeting. Meanwhile, strong labor data could push rates even higher. Therefore, gold investors must stay alert to upcoming US economic data.
Technical Support and Resistance Levels
Now let’s look at the technical numbers. Manoj Kumar Jain from Prithvifinmart provided the key levels for today’s session. Therefore, traders should mark these figures carefully.
Gold Technicals:
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MCX Support: ₹1,50,650 and ₹1,49,800
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MCX Resistance: ₹1,52,200 and ₹1,53,100
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Global Support: $4,632 per troy ounce
Silver Technicals:
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MCX Support: ₹2,47,700 and ₹2,44,400
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MCX Resistance: ₹2,54,000 and ₹2,58,000
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Global Resistance: $78.80 per troy ounce
So the market appears to be in a range-bound motion. Meanwhile, breaking these levels could signal a new trend. Therefore, watch the ₹1,50,650 level closely for gold.
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Expert Advice: Buying and Selling Strategies
Now expert Manoj Kumar Jain suggests a cautious approach. He believes the market is currently “stuck in a range.” Therefore, booking profits at highs might be wise.
First, he suggests closing long gold positions around ₹1,53,000. Next, silver profit-booking is recommended near ₹2,55,000. Thus, traders can lock in gains before the next dip.
So where should you buy? Fresh buying can be initiated in gold around ₹1,49,800. Meanwhile, silver looks attractive for new entries near ₹2,54,000. Therefore, a “buy on dips” strategy remains popular.
FAQ: Gold Rate Today on MCX
1. Why is the gold rate today MCX declining? Now gold is falling because of progress in US-Iran peace talks and a stronger dollar.
2. What are the support levels for gold today? First, gold has strong support at ₹1,50,650 and ₹1,49,800 on the MCX.
3. Is silver also down today? Yes. Silver July futures were down 0.15% at ₹2,50,549 per kg in the morning.
4. How is crude oil affecting gold prices? High crude oil prices (above $100) cause inflation. Therefore, this usually supports gold as a hedge.
5. What is the current US Federal Reserve interest rate? Currently, interest rates are held between 3.5% and 3.75%.
6. Is it a good time to buy gold? Experts suggest waiting for a dip toward ₹1,49,800 for fresh long positions.
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End…
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