Gold Rates In India Outlook For May 6-7; MCX Gold May Hit Rs 94,000; What Will Drive 24K, 22K, 18K Prices?

SMC Global Securities Outlook On Gold Prices In India For The Current Week:

Gold prices fell to a two-week low and posted a second consecutive weekly decline as easing global trade tensions reduced demand for safe-haven assets. Sentiment improved after China indicated a willingness to restart trade talks with the U.S., raising hopes for a de-escalation in their ongoing disputes. This came on the heels of President Trump's optimistic remarks suggesting trade agreements could be reached with India, Japan, South Korea, and potentially China. Earlier, Trump signed an executive order easing some tariffs on automobiles and auto parts, further boosting risk sentiment.

Meanwhile, economic data from the U.S. painted a mixed picture. The economy contracted in the first quarter, and the PCE price index showed no change in March, signaling subdued inflation. Jobless claims rose sharply by 18,000 to 241,000, the highest since February 22, and well above the forecast of 225,000, adding to concerns over slowing growth. The U.S. dollar strengthened, with the ICE Dollar Index rising to 100.28. Treasury yields also moved higher, with the two-year note yielding 3.705% and the 10-year at 4.225%. Geopolitical developments also impacted market sentiment.

A newly signed minerals deal with Ukraine gives the U.S. access to rare earths and critical materials, marking a shift from military aid to economic partnership. Treasury Secretary Scott Bessent called it a move toward peace and rebuilding, prompting traders to reduce their risk hedges, weighing further on gold. On the technical front, Comex gold is finding support near $3,190 and resistance around $3,320, while silver may range between $31.60 and $34.00. On the MCX, gold is expected to trade between ₹89,900 and ₹94,000, and silver between ₹90,600 and ₹97,800 in the week ahead.