Gold traded lower on MCX on June 24 as the dollar index remained above 101 amid growing expectations of US Federal Reserve monetary tightening. August gold futures fell 0.37% to Rs. 1,40,748. July silver futures slipped 1.07% to Rs. 2,10,801. Meanwhile, Brent crude futures declined 1.68% to $72.50 a barrel. US West Texas Intermediate (WTI) fell 1.46% to $69.31 a barrel.
According to the CME FedWatch Tool, traders now expect three rate hikes from the US Federal Reserve this year, with a 67% chance of a September hike.
24K gold fell by Rs. 278 to Rs. 1,40,130 per 10 grams, while 22K gold fell by Rs. 255 to Rs. 1,28,450. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,40,130, while Delhi was at Rs. 1,40,280, and Chennai at Rs. 1,45,630.
US gold prices extended their losses on Thursday, trading near a more than seven-month low touched in the previous session as the US dollar remained firm amid growing expectations of further interest rate hikes by the Federal Reserve.
Spot gold fell 0.4% to $3,985.89 per ounce. US gold futures for August delivery eased 0.2% to $4,001.60 per ounce.
Spot silver fell 0.2% to $57.33 per ounce, platinum lost 0.2% to $1,575.85, while palladium gained 0.3% at $1,170.25.
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“The market is pricing a rate hike as soon as September due to a hawkish Fed. A surging dollar and lower inflation expectations are weighing on precious metals,” Tai Wong, an independent metals trader.
“A collapse is unlikely, but gold may remain in a long consolidation phase as demand is currently weak,” he said.
MCX gold has support at Rs. 1,40,000 and Rs. 1,38,800 and resistance at Rs. 1,42,400 and Rs. 1,43,350, while silver has support at Rs. 2,09,100 and Rs. 2,05,000 and resistance at Rs. 2,16,600 and Rs. 2,21,000.