Gold prices dropped almost 1% on May 15, 2025, due to a stronger US dollar and easing geopolitical tensions. This blog provides the latest gold price analysis, MCX technical levels, and expert trading strategies.
Gold Price Today: A 1% Decline Amid Global Market Shifts
On May 15, 2025, gold prices experienced a sharp decline of nearly 1%, driven by global economic developments and weakening demand for safe-haven assets. The pressure is attributed to a strengthening US dollar, signs of geopolitical stability, and market uncertainty over the Federal Reserve’s monetary policy outlook.
At the time of reporting:
- MCX Gold June Futures are trading at approximately ₹71,420 per 10 grams, down around ₹700.
- Spot Gold in the international market is priced at $2,335 per ounce, its lowest level in more than two weeks.
This pullback follows months of bullish momentum fueled by inflation concerns and geopolitical unrest.
Key Reasons Behind Today’s Gold Price Fall
1. Strengthening of the US Dollar
The US Dollar Index (DXY) has risen to 104.90, making gold more expensive for international buyers. Since gold is dollar-denominated, a stronger dollar typically leads to weaker demand.
2. Easing Geopolitical Tensions
Calmer geopolitical developments, particularly in the Middle East and Eastern Europe, have reduced investor anxiety. With ceasefire talks and diplomatic engagement gaining momentum, the risk premium on gold has declined.
3. Uncertain Federal Reserve Policy
The Federal Reserve has yet to confirm any interest rate cuts despite easing inflation figures. Mixed comments from central bank officials have created uncertainty in financial markets, leading investors to seek clarity before re-entering long gold positions.
MCX Gold Technical Analysis: Support and Resistance Levels
| Indicator | Value (MCX Gold – June Futures) |
| Immediate Support | ₹71,200 |
| Key Support | ₹70,800 |
| Resistance Level 1 | ₹72,000 |
| Resistance Level 2 | ₹72,400 |
| RSI (14-day) | 48 (Neutral zone) |
| Trend Outlook | Bearish (short-term) |
Gold is approaching key support near ₹71,000. A sustained breach below this level could open doors to further correction. Conversely, reclaiming ₹72,000 may revive bullish sentiment.
Expert Strategies for MCX Gold Traders
Short-Term Trading Strategy (1–3 Days)
- Action: Sell near ₹71,800–₹72,000
- Stop Loss: ₹72,400
- Target: ₹70,800–₹71,000
Positional Strategy (1–2 Weeks)
- Action: Wait for consolidation around ₹70,800–₹71,000
- Buy if: Global sentiment remains stable and dollar weakens
- Target: ₹72,800
- Stop Loss: ₹70,500
Long-Term Investment Strategy
- Action: Partial profit-booking above ₹72,000
- View: Long-term outlook remains bullish despite short-term volatility
- Advice: Consider accumulating on dips for long-term holdings
Global Market Outlook: What Lies Ahead
Several global and domestic indicators will continue to influence gold prices:
- Upcoming US inflation data and Federal Reserve meeting minutes
- Dollar Index and US Treasury bond yields
- Central bank gold purchases (especially China and India)
- Seasonal demand and physical gold buying trends
If the Federal Reserve signals any dovish shift and the dollar weakens, gold could bounce back above the $2,400 level in the coming weeks.
Should You Buy or Sell Gold Now?
With gold facing temporary pressure, traders are advised to proceed with caution. The short-term trend is bearish, but long-term fundamentals remain supportive.
- Short-term: Look for bounce-back opportunities near key support levels
- Long-term: Corrections can be used as a strategic buying opportunity
Gold continues to be an important hedge against economic uncertainty, currency weakness, and inflation. Monitoring key macro indicators will help traders and investors make informed decisions.
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