Gold prices on Multi Commodity Exchange (MCX) fell sharply on Friday, tracking losses in the global bullion market, as signs of easing geopolitical tensions in the Middle East with the Israel-Iran ceasefire holding up, and global trade optimism dampened safe-haven demand for the precious metal.
MCX gold rate for August futures ended lower by ₹1,563, or 1.61%, at ₹95,524 per 10 grams. During the session, gold prices hit a low of 94,951, falling by ₹2,136, or 2.2%, from its previous close of ₹97,087. For the week, MCX gold price slumped 3.61%.
MCX silver prices for September futures also declined. The white metal ended down by ₹1,468, or 1.36%, at ₹1,06,429 per kg. It touched a low of ₹1,05,380 during the session.
In the international market, comex gold fell over 1.5% to trade below $3,270 per ounce, marking a second straight weekly loss and a nearly 3% decline for the week.
“The slide in gold prices comes as geopolitical risks ease and global trade optimism strengthens, dampening safe-haven appetite. A tentative ceasefire between Israel and Iran held firm, while US Commerce Secretary Howard Lutnick indicated trade frameworks with China and others are nearing completion — fueling risk-on sentiment in markets,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, the US dollar dropped over 1.5% to below 97.3, its lowest since February 2022, weighed down by rising expectations of interest rate cuts following US Federal Reserve Chair Jerome Powell’s dovish congressional testimony.
Gold price next week will be influenced by a slew of factors, including economic data release in the US and European region.
“Key focal points for the coming week include, the progress in US trade talks ahead of the July 9 tariff decision deadline, the ECB Central Bank Forum, with comments expected from top officials including Chair Powell, and US macro data such as Nonfarm Payrolls, ISM Manufacturing & Services PMIs, and trade figures,” Trivedi noted.
Gold Price Outlook
Gold price is expected to remain under pressure with a bearish bias, according to Jigar Trivedi.
“Comex gold has key support at $3,230 – $3,200 per ounce, while resistance is placed at $3,350 level. MCX gold price for August futures is expected to decline towards ₹94,800 – ₹94,000 per 10 grams as momentum remains weak,” Trivedi said.
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