Gold futures on the Multi Commodity Exchange (MCX) declined on July 9, driven by renewed geopolitical tensions between the US and Iran and growing expectations of aggressive monetary tightening by the Federal Reserve. August gold futures slipped 0.24% to Rs. 1,43,371 per 10 grams, while September silver futures dropped 0.44% to Rs. 2,22,464.
On the global front, Brent crude oil futures rose 1.05% to $78.84 a barrel, and US West Texas Intermediate (WTI) crude advanced 1.07% to $74.31 a barrel, as market participants priced in the increased risk premium from the unstable US-Iran ceasefire agreement.
According to the CME FedWatch Tool, traders now see a 68% probability of a Fed rate hike in September, up from 63% previously. This repricing of a possible second interest rate hike as early as Q1 next year has been a key factor pressuring gold prices, according to Kelvin Wong, senior market analyst at OANDA.
Domestic and US Gold Prices
In India, 24K gold fell by Rs. 11 to Rs. 1,43,240 per 10 grams, while 22K gold declined by Rs. 10 to Rs. 1,31,300. City-wise, Mumbai and Kolkata recorded prices at Rs. 1,43,240, Delhi at Rs. 1,43,390, and Chennai at Rs. 1,44,220.
Internationally, spot gold dropped 0.4% to $4,060.46 per ounce, hovering near a one-week low. US gold futures for August delivery were down 0.3% at $4,069.80. Spot silver fell 0.9% to $57.77 per ounce, while platinum rose 0.8% to $1,591.13 and palladium gained 0.8% to $1,223.95.
Key Levels to Watch
Analysts have identified key support and resistance levels for gold and silver. Internationally, gold has support at $4,055 and $4,010 and resistance at $4,122 and $4,150 per troy ounce. Silver has support at $57 and $55.50 and resistance at $60 and $61.40.
On the MCX, gold has support at Rs. 1,43,100 and Rs. 1,42,200 and resistance at Rs. 1,44,400 and Rs. 1,45,150. Silver has support at Rs. 2,20,000 and Rs. 2,16,600 and resistance at Rs. 2,26,600 and Rs. 2,30,000.
Market participants will continue to monitor developments in the Middle East and any new signals from the Federal Reserve regarding the timing of policy tightening, which could further influence precious metal prices.
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