Gold Prices Slip 0.48% on MCX to ₹1,41,800 as US Dollar Strengthens; Key Support and Resistance Levels in Focus

Gold traded lower on the Multi Commodity Exchange (MCX) on Tuesday, July 28, as a stronger US dollar and anticipation of the Federal Reserve’s monetary policy decision weighed on the precious metal. August gold futures declined by 0.48%, settling at ₹1,41,800 per 10 grams.

September silver futures also took a hit, falling 1.73% to ₹2,17,343. In the energy sector, Brent crude futures dropped 1.20% to $87.30 per barrel, while US West Texas Intermediate (WTI) edged down 1.16% to $81.65 per barrel.

The decline comes as the US dollar index hovered near 101.5 ahead of the Fed’s rate decision scheduled for July 29. According to the CME FedWatch Tool, traders now price in an 81% chance of a rate hike in September, adding pressure on gold prices.

Domestic Gold Prices

In India, 24K gold fell by ₹169 to ₹1,44,170 per 10 grams, while 22K gold declined by ₹155 to ₹1,32,150. Prices varied slightly across major cities:

• Mumbai: ₹1,44,170
• Kolkata: ₹1,44,170
• Delhi: ₹1,44,320
• Chennai: ₹1,44,160

US Gold Prices

Across the Atlantic, spot gold fell 0.7% to $4,044.81 per ounce, after rising about 1% on Monday. US gold futures for August delivery lost 0.8% to $4,045.40. Other precious metals mirrored the decline: spot silver dropped 1.9% to $57.30, platinum lost 1% to $1,605.14, and palladium slid 1.6% to $1,271.09.

Key Levels to Watch

Market analysts remain cautious ahead of the Fed’s decision. Ilya Spivak, Head of Global Macro at Tastylive, commented: “We’re oscillating in this narrow range between $3,950 and $4,200, and I think the market is just waiting for Fed signals.” Spivak added that if the Fed meeting does not set the groundwork for a September rate hike, gold is likely to rally above $4,200 per ounce.

Key support and resistance levels for traders:

• International Gold: Support at $4,034 and $4,000; resistance at $4,110 and $4,140 per troy ounce.
• International Silver: Support at $57.20 and $56.60; resistance at $59.40 and $60 per troy ounce.
• MCX Gold: Support at ₹1,42,200 and ₹1,41,400; resistance at ₹1,44,000 and ₹1,45,150.
• MCX Silver: Support at ₹2,19,100 and ₹2,17,000; resistance at ₹2,24,000 and ₹2,26,600.

As always, investors are advised to monitor global cues, the dollar index, and Fed statements for further direction in gold and silver prices.