Gold traded lower on MCX on July 1 as a stronger US dollar, rising treasury yields, and growing expectations of US Federal Reserve rate hikes keep the precious metals under pressure. August gold futures fell 0.76% to Rs. 1,41,444. July silver futures slipped 1.6% to Rs. 2,24,914. Meanwhile, Brent crude futures rose 0.40% to $73.24 a barrel. US West Texas Intermediate (WTI) gained 0.40% to $69.78 a barrel.
According to the CME FedWatch Tool, traders now expect a 67% chance of a September hike by the US Federal Reserve.
24K gold fell by Rs. 126 to Rs. 1,40,780 per 10 grams, while 22K gold declined by Rs. 115 to Rs. 1,29,050. By city, Mumbai and Kolkata mirrored prices at Rs. 1,40,780, while Delhi was at Rs. 1,40,930, and Chennai at Rs. 1,43,990.
US gold prices fell on Wednesday after hitting a seven-month low in the previous session amid uncertainty around US-Iran peace, which kept inflation and Federal Reserve rate hike concerns elevated.
Spot gold was down 0.7% at $3,979.41 per ounce. US gold futures for August delivery lost 1.1% to $3,992.70.
Spot silver fell 1.4% to $57.75 per ounce, platinum lost 0.6% to $1,542, having hit its lowest since last November, and palladium inched 0.4% lower to $1,199.34.
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"It looks like the pressure from higher yields is what's getting gold lower. The US dollar is also a touch higher at the same time, which kind of confirms what's going on," said Ilya Spivak, head of global macro at Tastylive.
Internationally, gold has support at $3,994 and $3,955, while resistance is at $4,074 and $4,110 per troy ounce. Silver has support at $57.70 and $56, while resistance is at $61.20 and $62.80 per troy ounce.
On MCX, gold has support at Rs. 1,41,100 and Rs. 1,40,000, and resistance is at Rs. 1,43,350 and Rs. 1,44,200, while silver has support at Rs. 2,25,500 and Rs. 2,22,000 and resistance at Rs. 2,31,000 and Rs. 2,34,400.