Gold traded lower on MCX on June 24 amid a stronger US dollar. The dollar index rose to an over-1-year high of 101.52, driven by expectations of US Federal Reserve monetary policy tightening. August gold futures fell 1.43% to Rs. 1,44,430. July silver futures slipped 1.36% to Rs. 2,22,766. Meanwhile, Brent crude futures declined 0.91% to $76.38 a barrel. US West Texas Intermediate (WTI) fell 0.94% to $72.52 a barrel.
According to the CME FedWatch Tool, traders now expect three rate hikes from the US Federal Reserve this year, up from one before last week's Fed meeting.
24K gold fell by Rs. 27 to Rs. 1,44,330 per 10 grams, while 22K gold fell by Rs. 25 to Rs. 1,32,300. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,44,330, while Delhi was at Rs. 1,44,480, and Chennai at Rs. 1,47,920.
US gold extended losses on Wednesday, touching its lowest level in almost two weeks as the dollar climbed amid rising bets on US interest rate hikes, while investors assessed conflicting signals on the US-Iran peace talks.
Spot gold fell 1% to $4,067.51 per ounce, having earlier hit its lowest level since June 11. US gold futures for August delivery declined 1.6% to $4,083.90.
Spot silver fell 0.9% to $61.44 per ounce, platinum fell 0.8% to $1,638, and palladium fell 0.8% at $1,227.41.
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"What we're witnessing here is the evolution of the pressure that gold came under as a function of the war," said Ilya Spivak, head of global macro at Tastylive.
"The sort of inflation-to-higher-rates dynamic has appeared in bonds falling, yields rising, the dollar rising, and gold falling."
Internationally, gold has support at $4,089 and $4,040, while resistance is at $4,185 and $4,220 per troy ounce. Silver has support at $60 and $58.40, while resistance is at $63.60 and $65.20 per troy ounce.
On MCX, gold has support at Rs. 1,45,200 and Rs. 1,44,000 and resistance at Rs. 1,47,200 and Rs. 1,48,100, while silver has support at Rs. 2,21,000 and Rs. 2,16,600 and resistance at Rs. 2,28,800 and Rs. 2,31,200.