Gold prices edged lower on the Multi Commodity Exchange (MCX) on July 29, as investors adopted a cautious stance ahead of the US Federal Reserve’s monetary policy meeting. August gold futures declined by 0.25% to settle at Rs 1,41,275 per 10 grams.
In contrast, silver futures for September delivery gained 0.32% to Rs 2,16,530. Meanwhile, crude oil prices surged, with Brent crude futures rising 4.27% to $87.68 per barrel and US West Texas Intermediate (WTI) climbing 4.21% to $82.60 per barrel.
According to the CME FedWatch Tool, traders now see a 76% probability of a rate hike in September by the US Federal Reserve, fueling uncertainty in the precious metals market.
Domestic Gold Prices
In the Indian market, 24K gold fell by Rs 86 to Rs 1,43,510 per 10 grams, while 22K gold declined by Rs 60 to Rs 1,31,550. Regionally, Mumbai and Kolkata recorded identical prices at Rs 1,43,510, Delhi at Rs 1,43,660, and Chennai at Rs 1,43,510.
US Gold Prices
In the international market, gold prices remained largely steady as investors awaited the Fed’s policy decision and comments from Fed Chair Kevin Warsh for clues on inflation and interest rates. Spot gold was little changed at $4,029.08 per ounce, while US gold futures for August delivery edged down 0.2% to $4,028.10.
Spot silver gained 0.9% to $57.65 per ounce, platinum inched 0.3% higher to $1,600.40, and palladium slipped 0.7% to $1,261.
Key Levels to Watch
Kelvin Wong, senior market analyst at OANDA, noted, “Gold is very much connected to today’s FOMC meeting. The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric.”
Internationally, gold has support at $4,010 and $3,974 and resistance at $4,070 and $4,110 per troy ounce. Silver has support at $56.80 and $56 and resistance at $58.40 and $59.10 per troy ounce.
On the MCX, gold has support at Rs 1,40,800 and Rs 1,40,000 and resistance at Rs 1,42,200 and Rs 1,43,100. Silver has support at Rs 2,14,000 and Rs 2,12,200 and resistance at Rs 2,17,700 and Rs 2,20,000.