Gold traded lower on MCX on July 8 amid weakness in global bullion prices, as tensions between the US and Iran escalated in the Middle East raising inflation concerns and lifted the dollar. August gold futures fell 0.35% to Rs. 1,44,885. September silver futures fell 0.8% to Rs. 2,29,007. Meanwhile, Brent crude futures rose 2.55% to $76.05 a barrel. US West Texas Intermediate (WTI) advanced 2.51% to $72.21 a barrel.
According to the CME FedWatch Tool, traders now expect a 63% chance of a September hike by the Fed, up from 57% previously.
24K gold fell by Rs. 77 to Rs. 1,44,490 per 10 grams, while 22K gold also declined by Rs. 70 to Rs. 1,32,450. By city, Mumbai and Kolkata mirrored prices at Rs. 1,44,490, while Delhi was at Rs. 1,44,640, and Chennai at Rs. 1,45,420.
US gold prices showed mixed trends on Wednesday, as concerns around inflation and higher interest rates rose after fresh US strikes on Iran.
Spot gold rose 0.5% to $4,125.59 per ounce. US gold futures for August delivery shed 0.5% to $4,136.30.
Spot silver rose 0.8% to $60.47 per ounce, platinum slipped 0.3% to $1,635.45 and palladium dropped 0.6% to $1,268.64.
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"Over the past 24 hours, there was a little bit of a scare again on the inflation front. So bonds came in lower, the dollar popped a little, gold pulled back, and now seems to be kind of stabilising after that correction," said Ilya Spivak, head of global macro at Tastylive.
"At this point, we've been watching gold attempt to carve out a bottom."
Immediate resistance for MCX gold price is placed at Rs. 1,46,000 per 10 grams and support is seen at Rs. 1,44,000. While the broader trend remains under pressure, a technical pullback is possible at current levels. For MCX silver price, the Rs. 2,32,500 per kg is the key resistance level and Rs. 2,28,000 as immediate support.