Gold Prices Dip as Brent Crude Trades Above $100, Fueling Rate Hike Expectations

Gold prices edged lower on the Multi Commodity Exchange (MCX) on July 24 as Brent crude oil held above $100 a barrel, intensifying inflation concerns and reinforcing expectations for a September rate hike by the U.S. Federal Reserve.

Domestic Gold Prices

MCX August gold futures dropped 0.7% to Rs 1,41,824 per 10 grams. September silver futures also declined, falling 0.88% to Rs 2,17,447. In the physical market, 24K gold fell by Rs 185 to Rs 1,44,330 per 10 grams, while 22K gold declined by Rs 170 to Rs 1,32,300. Prices in Mumbai and Kolkata stood at Rs 1,44,330, Delhi at Rs 1,44,480, and Chennai at Rs 1,44,330.

US Gold and Precious Metals

Spot gold slipped 0.4% to $4,030.09 per ounce, extending losses after a 2% drop in the previous session. U.S. gold futures for August delivery were also 0.4% lower at $4,033.20. Spot silver fell 0.7% to $57.29 per ounce but was on track for a weekly gain of 2.5%. Platinum dropped 1.3% to $1,579.49, and palladium declined 1.5% to $1,237.50, both heading for a weekly loss.

Key Levels to Watch

According to the CME FedWatch Tool, traders now see an 81% probability of a quarter-point rate hike in September. Elevated crude oil prices above $100 are adding to inflation pressures, strengthening the case for tighter monetary policy.

GoldSilver Central Managing Director Brian Lan noted, “In the short term, we expect more volatility… gold has been trading between $3,980 and about $4,170 and has been stuck in this range for weeks. Every time prices hit close to $4,000 or slightly below, we see big buyers coming to buy it back up.”

Technically, XAU/USD trades around $4,030 and remains capped below the 21-day simple moving average (SMA) at $4,068.50 and the 50-day SMA at $4,231.04. The Relative Strength Index (RSI) sits near 44, indicating neutral-to-soft momentum. Immediate resistance is at $4,068.50, followed by the 50-day SMA near $4,231.04. A break above that would face further resistance at the 100-day SMA ($4,479.88) and the 200-day SMA ($4,494.74), which form a dense zone that needs to be reclaimed to ease the broader bearish tone.