Gold prices edged lower on the Multi Commodity Exchange (MCX) on July 7, as investors turned cautious ahead of the release of the US Federal Reserve’s minutes from its June policy meeting. The August gold futures contract declined 0.63% to settle at Rs 1,45,990 per 10 grams, while September silver futures dropped 1.23% to Rs 2,33,201.
In the energy market, Brent crude futures gained 0.60% to $72.42 a barrel, and US West Texas Intermediate (WTI) crude rose 0.51% to $68.90 a barrel. The rise in crude prices added to inflationary concerns, which weighed on bullion demand.
According to the CME FedWatch Tool, market expectations for a September rate hike by the Federal Reserve have eased slightly to 56%, down from 60% previously. The upcoming Fed minutes are expected to provide further clarity on the central bank’s monetary policy trajectory.
Domestic Gold Prices
In the domestic spot market, 24K gold fell by Rs 136 to Rs 1,45,260 per 10 grams, while 22K gold declined by Rs 125 to Rs 1,33,150. Regional variations were observed: Mumbai and Kolkata quoted gold at Rs 1,45,260, Delhi at Rs 1,45,410, and Chennai at Rs 1,47,920.
US Gold Prices
Internationally, gold prices eased on Tuesday, trading below a two-week high. Spot gold slipped 0.6% to $4,138.32 per ounce, while US gold futures for August delivery fell 0.4% to $4,149.90. Among other precious metals, spot silver declined 1% to $61.48 per ounce, platinum eased 0.1% to $1,629.46, and palladium rose 0.4% to $1,272.85.
Key Levels to Watch
Nicholas Frappell, global head of institutional markets at ABC Refinery, noted that gold price action reflects a continuation of last week’s pattern, with the market forming a support base while awaiting direction from the Fed minutes.
Internationally, gold has support at $4,135 and $4,100 per troy ounce, with resistance at $4,194 and $4,220. Silver support stands at $61.20 and $59.80, with resistance at $63.40 and $64.20. On MCX, gold support is at Rs 1,46,100 and Rs 1,45,500, while resistance is at Rs 1,47,400 and Rs 1,48,200. Silver support on MCX is at Rs 2,33,300 and Rs 2,30,000, with resistance at Rs 2,38,800 and Rs 2,41,000.
Market participants remain focused on the Fed’s policy outlook, which will likely dictate the near-term direction for gold and other commodities.