Gold prices on the Multi Commodity Exchange (MCX) declined on July 31, as profit booking and a stronger US dollar weighed on the precious metal. August gold futures fell 0.57% to Rs 1,42,413 per 10 grams. September silver futures also declined by 0.53% to Rs 2,18,805.
In the international market, spot gold dropped 0.6% to $4,076.53 per ounce, while US gold futures for August delivery lost 0.4% to $4,074.20. Spot silver fell 0.8% to $58.48 per ounce, platinum slid 1.7% to $1,631.77, and palladium declined 0.8% to $1,294.
Crude oil prices also edged lower, with Brent crude futures falling 0.98% to $88.16 per barrel and US West Texas Intermediate (WTI) declining 1.47% to $82.36 per barrel.
According to the CME FedWatch Tool, traders now see a 63% probability of a rate hike by the US Federal Reserve in September. This expectation, combined with a stronger dollar and escalating tensions in the Middle East, has injected volatility into the precious metals market.
Despite the daily decline, gold has found support around the $4,000 level, attracting buyers on dips. “Gold is showing a mild negative bias today amid profit-taking and a moderate bounce in the US dollar, following the metal’s gains yesterday,” said Tim Waterer, chief market analyst at KCM Trade. He added that gold has had a better run this month, with key support near $4,000.
Key Levels to Watch
Internationally, gold has support at $4,064 and $4,020, with resistance at $4,120 and $4,155 per troy ounce. Silver has support at $58.20 and $57.70, with resistance at $59.80 and $60.60 per troy ounce.
On MCX, gold has support at Rs 1,42,400 and Rs 1,41,750, with resistance at Rs 1,44,000 and Rs 1,45,100. Silver has support at Rs 2,17,700 and Rs 2,16,000, with resistance at Rs 2,22,200 and Rs 2,24,500.
Domestic and US Gold Prices
In India, 24K gold rose by Rs 27 to Rs 1,44,600 per 10 grams, while 22K gold advanced by Rs 25 to Rs 1,32,550. Prices in Mumbai and Kolkata were at Rs 1,44,600, Delhi at Rs 1,44,750, and Chennai at Rs 1,44,600.
US gold prices found support from bargain buying near the $4,000 level, as investors weighed Middle East developments and their impact on the US rate outlook.
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