Gold traded lower on MCX on June 24 amid renewed escalation in the US-Iran conflict, which drove oil prices higher and stoked inflation concerns that could prompt the US Federal Reserve to tighten monetary policy. August gold futures fell 0.56% to Rs. 1,43,350. July silver futures slipped 0.7% to Rs. 2,19,863. Meanwhile, Brent crude futures declined 0.67% to $72.47 a barrel. US West Texas Intermediate (WTI) fell 1.80% to $70.05 a barrel.
According to the CME FedWatch Tool, traders now expect three rate hikes from the US Federal Reserve this year, with an 80% chance of a December hike.
24K gold fell by Rs. 93 to Rs. 1,43,020 per 10 grams, while 22K gold fell by Rs. 85 to Rs. 1,31,100. By city, Mumbai and Kolkata mirrored prices at Rs. 1,43,020, while Delhi was at Rs. 1,43,170, and Chennai at Rs. 1,45,090.
US gold prices eased on Monday as recent US-Iran strikes in the Gulf pushed oil prices higher.
Spot gold was down 0.6% at $4,062.89 per ounce. US gold futures for August delivery lost 0.5% to $4,077.50. The metal was headed for a fourth consecutive monthly loss of 10.4%.
Spot silver fell 1.2% to $58.47 per ounce, while platinum gained 0.2% to $1,617.15 and palladium rose 0.4% to $1,213.60.
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"US and Iran were at it again over the weekend, with fresh military strikes reported from both parties, which casts further doubt over how long oil can stay at these subdued levels and therefore over the broader inflation and interest rate outlook," said Tim Waterer, chief market analyst at KCM Trade.
"Gold could see the $5,000 level again this year, but this would be based on further de-escalation, oil having a sustained move to pre-war levels to dull the inflationary impact of the conflict, and a softer dollar," said Waterer.
Internationally, gold has support at $4,055 and $4,010, while resistance is at $4,135 and $4,180 per troy ounce, and silver has support at $57.40 and $55.80, while resistance is at $61.20 and $62.80 per troy ounce.
On MCX, gold has support at Rs. 1,43,300 and Rs. 1,42,400 and resistance at Rs. 1,45,150 and Rs. 1,46,200, while silver has support at Rs. 2,20,000 and Rs. 2,16,600 and resistance at Rs. 2,26,000 and Rs. 2,29,100.