Gold traded lower on MCX on June 18 amid heavy selling as the US Federal Reserve signaled an interest rate hike later in the year. However, inflation concerns cooled down as US President Donald Trump signed the MOU to reopen the Strait of Hormuz. August gold futures edged lower 0.9% to Rs. 1,52,500. July silver futures slipped 1.99% to Rs. 2,46,798. Meanwhile, Brent crude futures declined 1.73% to $78.17 a barrel. US West Texas Intermediate (WTI) fell 1.90% to $75.33 a barrel.
24K gold fell by Rs. 27 to Rs. 1,51,100 per 10 grams, while 22K gold fell by Rs. 25 to Rs. 1,38,500. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,51,100, while Delhi was at Rs. 1,51,250, and Chennai at Rs. 1,53,370.
US gold gained over 1% on Thursday, recouping losses from the previous session, as oil prices fell after the US and Iran signed an interim agreement to end their war.
The 14-point agreement extends the ceasefire announced in April by another 60 days to allow the two sides to negotiate a final truce.
Spot gold rose 1.5% to $4,322.41 per ounce on Wednesday. US gold futures for August delivery fell 0.9% to $4,343.10.
Spot silver rose 2.2% to $69.51 per ounce, platinum gained 1.8% to $1,767.53, and palladium was up 2% at $1,338.67.
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"It's a bit of short position unwinding (in gold) given yesterday's steep fall and the reason for the short unwinding is also due to the positive news coming out from the Middle East, which has caused oil prices to fall," said Kelvin Wong, a senior market analyst at OANDA.
"I expect gold prices to remain muted on the upside, given the fact that market participants now have repriced a higher possibility of the Federal Reserve to kind of kickstart an interest rate-hike cycle," Wong said.
MCX gold rate remains weak, with support seen at Rs. 1,51,800 level and resistance placed at Rs. 1,53,300 level. MCX silver price has support at Rs. 2,42,000 level and resistance is seen at Rs. 2,51,000 level.