Gold prices edged higher on the Multi Commodity Exchange (MCX) on July 20, supported by value buying as the US dollar softened, while Brent crude oil surged past the $90-per-barrel threshold, intensifying expectations that the Federal Reserve will raise interest rates again before year-end.
August gold futures on MCX rose 0.32% to ₹1,41,039 per 10 grams, while September silver futures gained 1% to ₹2,18,560. Meanwhile, Brent crude futures climbed 2.62% to $90.41 per barrel, and US West Texas Intermediate (WTI) advanced 2.39% to $84.36 per barrel.
According to the CME FedWatch Tool, traders now see an 82% probability of a rate hike in December, up from 73% last week.
Domestic Gold Prices
In India, 24K gold rose by ₹17 to ₹1,43,460 per 10 grams, while 22K gold climbed ₹15 to ₹1,31,500. City-wise, Mumbai and Kolkata both quoted ₹1,43,460, Delhi ₹1,43,610, and Chennai ₹1,43,460.
US Gold Prices
In the international market, spot gold slipped 0.1% to $4,014.53 per ounce as escalating Middle East tensions pushed Brent crude above $90, stoking inflation fears. US gold futures for August delivery were steady at $4,019.80. Spot silver gained 1.9% to $56.95 per ounce, platinum rose 0.5% to $1,599.97, and palladium eased 0.2% to $1,244.50.
“Weekend escalations increase the risk of a full-scale offensive by both sides, which potentially threatens gold prices as the opportunity cost for holding the metal gets higher if this ongoing stagflation fear takes hold,” said Kelvin Wong, senior market analyst at OANDA.
Key Levels to Watch
International: Gold has support at $3,989 and $3,945, with resistance at $4,040 and $4,074 per troy ounce. Silver support is at $55.50 and $54.40, resistance at $57.50 and $58.80.
On MCX: Gold has support at ₹1,40,400 and ₹1,39,650, and resistance at ₹1,41,500 and ₹1,42,200. Silver support is at ₹2,14,400 and ₹2,11,000, with resistance at ₹2,18,800 and ₹2,21,000.
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