Gold traded lower on MCX on July 24 amid elevated oil prices above $100 which fueled inflation concerns. August gold futures fell 0.7% to Rs. 1,41,824. September silver futures declined 0.88% to Rs. 2,17,447. Meanwhile, Brent crude futures fell 0.02% to $100.7 per barrel. US West Texas Intermediate (WTI) edged lower by 0.27% to $91.94 per barrel.
According to the CME FedWatch Tool, traders now expect an 81% chance of a September rate hike by the US Federal Reserve.
24K gold fell by Rs. 185 to Rs. 1,44,330 per 10 grams, while 22K gold also declined by Rs. 170 to Rs. 1,32,300. By city, Mumbai and Kolkata mirrored prices at Rs. 1,44,330, while Delhi was at Rs. 1,44,480, and Chennai at Rs. 1,44,330.
US gold prices extended losses on Friday after falling 2% in the previous session, as Brent crude's move back above $100 a barrel stoked inflation concerns and strengthened the case for higher interest rates.
Spot gold eased 0.4% to $4,030.09 per ounce. US gold futures for August delivery were 0.4% lower at $4,033.20. Spot silver was down 0.7% at $57.29 per ounce, but was headed for a weekly gain of 2.5%. Platinum fell 1.3% to $1,579.49 and palladium dropped 1.5% to $1,237.50, both on track for a weekly drop.
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"In the short term, we expect more volatility... gold has been trading between $3,980 all the way to about $4,170 and has been stuck in this way for weeks. Every time prices hit close to $4,000 or slightly below, we see that there will be big buyers coming to buy it back up," said GoldSilver Central Managing Director Brian Lan.
XAU/USD trades around $4,030 on the daily chart and remains under pressure, capped below the 21-day simple moving average (SMA) at $4,068.50 and the 50-day SMA at $4,231.04. The Relative Strength Index stands around 44 in neutral-to-soft territory.
On the upside, immediate resistance is seen near $4,068.50, followed by a more significant barrier at the 50-day SMA around $4,231.04. Above there, the 100-day SMA at $4,479.88 and the 200-day SMA at $4,494.74 define a dense resistance zone that would need to be reclaimed to ease the broader bearish tone.