Tag: US dollar

  • Gold Prices Tumble Nearly 4% Amid Strong Dollar and Climbing US Yields

    Gold Prices Tumble Nearly 4% Amid Strong Dollar and Climbing US Yields

    Gold Prices Tumble Nearly 4% Amid Strong Dollar and Climbing US Yields

    Spot gold prices fell sharply on Monday, extending their decline to a seven-week low as higher crude oil prices fueled inflation concerns. The metal also came under pressure from a stronger US dollar and rising Treasury yields.

    According to Reuters data reported by The Times of India, spot gold fell by 3.8% to USD 4,121.6 per ounce, touching its lowest level since August 5. US gold futures also declined 3.9% to USD 4,153.7.

    Oil Prices Raise Inflation Concerns

    A sharp rise in crude oil prices has changed expectations around US monetary policy. Higher energy costs can add to inflation pressures and make it harder for the Federal Reserve to ease policy. Oil prices rose after developments surrounding the conflict involving Iran and the Strait of Hormuz.

    Jim Wyckoff, a market analyst at American Gold Exchange, said, “Sharply higher crude prices could point to more persistent inflation and tighter Federal Reserve policy. The US dollar also strengthened, making gold more expensive for buyers holding other currencies.”

    The dollar index rose to a two-month high on Tuesday and was heading for its strongest monthly performance since June. A stronger dollar typically weighs on dollar-denominated commodities because it raises their effective cost for international buyers.

    Market Outlook

    Higher US Treasury yields added another layer of pressure on gold. Rising yields increase the opportunity cost of holding assets such as gold, which does not generate regular interest income. US Treasury yields have climbed as markets reassess the outlook for Federal Reserve policy. Traders are increasingly pricing in another rate increase later this year, with expectations also shaped by upcoming US inflation and employment data.

    The combination of a strong dollar, rising yields, and inflation concerns suggests continued headwinds for gold prices in the near term.

  • Gold Price Today: MCX Gold Falls 0.57% to Rs 1,42,413 as Profit Booking and Stronger Dollar Weigh

    Gold Price Today: MCX Gold Falls 0.57% to Rs 1,42,413 as Profit Booking and Stronger Dollar Weigh

    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.

  • Indian Rupee Gains for Fourth Session, Rises 5 Paise to 95.77 Against US Dollar

    Indian Rupee Gains for Fourth Session, Rises 5 Paise to 95.77 Against US Dollar

    The Indian rupee strengthened for the fourth consecutive trading session on Wednesday, supported by a weaker US dollar, positive domestic equity sentiment, and renewed foreign investor buying.

    At the interbank foreign exchange market, the rupee opened at Rs. 95.70 against the US dollar before trading at Rs. 95.77, registering a gain of 5 paise from its previous close. The local currency had settled 17 paise higher at 95.82 on Tuesday after gaining 74 paise during the previous two sessions.

    According to forex traders, the rupee received support from firm domestic equities and Foreign Institutional Investors (FIIs) turning net buyers in the Indian stock market.

    Weak Dollar and Equity Gains Support Rupee

    The dollar index, which measures the greenback’s strength against a basket of six major currencies, declined 0.12% to 101.14 ahead of the US Federal Reserve’s monetary policy announcement.

    Domestic stock markets also opened higher. The Sensex advanced 682.57 points, or 0.89%, to 77,448.49, while the Nifty 50 gained 186.85 points, or 0.78%, to reach 24,172.20.

    FIIs purchased equities worth Rs. 755.33 crore on a net basis on Tuesday, according to exchange data. The return of foreign buying improved sentiment toward Indian assets and provided additional support to the local currency.

    Crude Oil and Fed Policy Remain Key Risks

    Brent crude futures were trading 4.27% higher at $87.68 per barrel. According to analysts, oil prices rose after fresh geopolitical tensions emerged following reports of Iranian missile attacks on American forces.

    The US Central Command said all Iranian missiles were successfully intercepted, adding that US forces “remain vigilant and at a high state of readiness.”

    India is a major importer of crude oil, and higher energy prices can increase demand for dollars while putting pressure on the rupee. The currency’s near-term movement is expected to remain influenced by the Federal Reserve’s policy signals, crude oil prices, foreign investment flows, and domestic equity performance.

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

    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.

  • Indian Rupee Strengthens 28 Paise as Crude Oil Drops to $92 Per Barrel

    Indian Rupee Strengthens 28 Paise as Crude Oil Drops to $92 Per Barrel

    The Indian rupee started the week on a strong note, gaining 28 paise against the US dollar after global crude oil prices fell sharply. On Monday, the rupee opened at 96.25 against the dollar, compared to Friday’s close of 96.53, driven by a 4.17% decline in Brent crude oil to around $92 per barrel.

    Market analysts attribute the rupee’s strength primarily to the drop in crude oil prices. India imports the majority of its crude oil, so lower oil costs reduce the country’s import bill and the demand for US dollars, providing support to the domestic currency.

    Mike Waltz, the US ambassador to the United Nations, commented on the situation, noting that President Donald Trump is giving negotiations ‘a little bit of room.’ Waltz added, ‘We’ve had both Oman and Iran, and a number of our other negotiators, engaged at every level, from the most senior levels all the way down to the technical level over the past few weeks and particularly in the past few days.’

    The dollar index, which measures the US currency against a basket of six major currencies, fell 0.26% to 101.04, further supporting the rupee’s gains. Traders said a weaker US dollar combined with lower oil prices boosted market confidence.

    Experts suggest that future movements in the currency market will depend on global events, including oil price trends, US economic data, and decisions by major central banks. These factors will continue to influence the foreign exchange market.

    A sustained fall in crude oil prices could have broader economic benefits beyond supporting the rupee. Lower oil prices can reduce transportation costs as fuel becomes cheaper, which may help slow the rise in everyday prices. If crude oil remains low for an extended period, inflation could ease further, benefiting both businesses and consumers while giving the Indian economy more room to grow.

  • Indian Rupee Weakens Past 96 Against US Dollar for First Time Since May Amid Rising Oil Prices and Dollar Strength

    Indian Rupee Weakens Past 96 Against US Dollar for First Time Since May Amid Rising Oil Prices and Dollar Strength

    The Indian rupee slipped below the 96-mark against the US dollar on Monday, reaching its weakest level since May, as a sharp rally in global crude oil prices and rising US bond yields reignited pressure on the domestic currency. The latest decline comes after the rupee had briefly recovered in recent weeks, supported by Reserve Bank of India (RBI) measures aimed at attracting dollar inflows.

    The renewed weakness follows escalating geopolitical tensions in the Middle East, which have pushed Brent crude prices to their highest level in over a month. As India imports nearly 85% of its crude oil requirements, higher energy prices typically widen the country’s import bill, increase demand for dollars, and weigh on the rupee.

    Oil Prices and US Yields Drive Currency Weakness

    Currency dealers mentioned that the rupee came under pressure from a mix of rising oil prices and a firmer US dollar. Brent crude has climbed by more than 20% compared with its recent lows. At the same time, US Treasury yields have moved higher after hawkish signals from Federal Reserve officials, making dollar-denominated assets more attractive to investors.

    The stronger greenback has also helped push down several currencies across Asia, including the rupee. As India is heavily reliant on crude oil imports, the ripple effect is felt throughout the exchange market.

    RBI Intervention Expected to Curb Volatility

    It is expected that the RBI will monitor rupee movements and, if it sees the situation becoming volatile, intervene to stabilize the currency. Earlier, it had sold dollars in the forex market to avoid a sharp devaluation. Analysts feel that intervention might curtail losses, but it will not change the trend if oil prices remain high.

    What Does This Mean for Consumers?

    As the rupee falls, its impact will be felt in the prices of imports such as crude oil and electronics. Over time, this will result in higher fuel prices and transport expenses.

    For now, traders will closely watch developments in the Middle East, movements in global crude prices, and the Federal Reserve’s policy outlook, all of which are expected to determine the rupee’s near-term direction. Unless oil prices ease or foreign capital inflows improve, the Indian currency is likely to remain under pressure in the coming sessions.

  • MCX Gold Drops 0.76% to ₹1,41,444 as Strong Dollar and Rate-Hike Expectations Weigh; Brent Crude Edges Up 0.40%

    MCX Gold Drops 0.76% to ₹1,41,444 as Strong Dollar and Rate-Hike Expectations Weigh; Brent Crude Edges Up 0.40%

    Gold prices retreated on the Multi Commodity Exchange (MCX) on July 1, pressured by a stronger US dollar, rising Treasury yields, and growing expectations that the Federal Reserve will implement another interest rate hike in September. The precious metal’s decline reflects broader market uncertainty surrounding US monetary policy and global economic signals.

    August gold futures on MCX fell 0.76%, settling at ₹1,41,444 per 10 grams. July silver futures also slipped, declining 1.6% to ₹2,24,914 per kilogram. Meanwhile, Brent crude futures for August delivery edged up 0.40% to $73.24 a barrel, while US West Texas Intermediate (WTI) crude gained 0.40% to $69.78 a barrel.

    According to the CME FedWatch Tool, traders now assign a 67% probability to a rate hike by the US Federal Reserve in September, adding downward pressure on non-yielding assets like gold.

    Domestic Gold Prices

    In the Indian market, 24K gold declined by ₹126 to ₹1,40,780 per 10 grams, while 22K gold dropped by ₹115 to ₹1,29,050. Regional variations were minimal: Mumbai and Kolkata both quoted 24K gold at ₹1,40,780, Delhi at ₹1,40,930, and Chennai at ₹1,43,990.

    US Gold Prices

    In the international market, gold prices fell for a second session, hitting a seven-month low earlier this week. Spot gold was down 0.7% at $3,979.41 per ounce, while US gold futures for August delivery lost 1.1% to $3,992.70. The decline was fueled by lingering inflation concerns and uncertainty surrounding US-Iran peace talks, which continue to keep Fed rate hike expectations elevated.

    Spot silver declined 1.4% to $57.75 per ounce, platinum lost 0.6% to $1,542 (hitting its lowest since last November), and palladium edged 0.4% lower to $1,199.34.

    Key Levels to Watch

    “It looks like the pressure from higher yields is what’s getting gold lower. The US dollar is also a touch higher at the same time, which kind of confirms what’s going on,” said Ilya Spivak, Head of Global Macro at Tastylive.

    Internationally, gold has support at $3,994 and $3,955 per troy ounce, with resistance at $4,074 and $4,110. Silver support stands at $57.70 and $56, while resistance is at $61.20 and $62.80.

    On MCX, gold support levels are at ₹1,41,100 and ₹1,40,000, with resistance at ₹1,43,350 and ₹1,44,200. Silver on MCX has support at ₹2,25,500 and ₹2,22,000, while resistance lies at ₹2,31,000 and ₹2,34,400.

  • Gold Dips Below $4,000 as Commodity Markets Close for Muharram Morning Session; Silver Nears $56

    Gold Dips Below $4,000 as Commodity Markets Close for Muharram Morning Session; Silver Nears $56

    The commodities market remained closed for the morning session on Friday due to Muharram, operating from 9:00 am to 5:00 pm. Evening trading resumed as usual from 5:00 pm to 11:30 pm/11:55 pm. Gold and silver prices continued to face downward pressure, extending a fourth consecutive weekly decline amid a stronger US dollar and expectations of higher US interest rates.

    According to the CME FedWatch Tool, traders now anticipate three rate hikes from the US Federal Reserve this year, with a 64% probability of a September increase. The robust dollar and hawkish Fed outlook weighed heavily on bullion, pushing spot gold below the $4,000 mark for the first time since November 2025. Spot gold fell 0.9% to $3,991.49 per ounce, while US gold futures for August delivery lost 1% to $4,007.30.

    Other precious metals also declined: spot silver dropped 3.2% to $56.01 per ounce, platinum lost 2.4% to $1,563.20, and palladium slid 1.6% to $1,165.93. Gold has fallen roughly 29% from its record high of $5,594.82 on January 29.

    Domestic Gold Prices in India

    In the domestic market, 24K gold rose by Rs. 27 to Rs. 1,41,600 per 10 grams, while 22K gold gained Rs. 25 to Rs. 1,29,800. City-wise prices were: Mumbai and Kolkata at Rs. 1,41,600, Delhi at Rs. 1,41,750, and Chennai at Rs. 1,43,340.

    Key Levels to Watch

    “The rapid repricing of the hawkish Fed created a strong bullish momentum in the US dollar, which eventually led to this significant downward drift in gold prices,” said Kelvin Wong, senior market analyst at OANDA. Renisha Chainani, Head of Research at Augmont, noted that the unwinding of yen carry trades, as USDJPY slides to a 40-year low on rising Japanese interest rates, is creating ripple-effect selling across safe-haven assets.

    Chainani explained that gold has broken below its key $4,000 support and dropped toward $3,950. A sustained breakdown could open the path toward $3,600, although oversold conditions leave room for a bottom-fishing or short-covering rally toward $4,100 and $4,165. She added that silver has also broken below the $60 level and slipped to $55.50, with the next support at $50 if bearish momentum continues.

    Meanwhile, Brent crude futures declined 1.77% to $73.93 a barrel, and US West Texas Intermediate (WTI) fell 1.86% to $70.58 per barrel.