Gold prices on MCX opened lower on June 10, amid weakness in the global precious metals market as concerns over high inflation fuelled interest rate hike fears. Gold’s August futures fell 1.43% to Rs. 1,50,258 per 10 grams. Silver July futures declined 1% to Rs. 2,36,148 per kg. Meanwhile, Brent crude futures rose 0.71% to $91.10 a barrel. US West Texas Intermediate (WTI) gained 0.66% to $88.76 a barrel.
According to the CME FedWatch tool, traders now expect over a 70% chance of a Federal Reserve interest rate hike by December.
24K gold rose Rs. 1 to Rs. 1,53,170 per 10 grams, while 22K gold advanced Rs. 1 to Rs. 1,40,410. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,53,170, while Delhi was at Rs. 1,53,320, and Chennai at Rs. 1,54,920.
US gold prices fell over 1% on Wednesday, as oil prices rose on renewed tensions between the US and Iran, fuelling concerns about inflation and interest rate hikes.
Spot gold fell 1.4% to $4,203.20 per ounce. Bullion hit its lowest level since March 23 on Tuesday. US gold futures for August delivery were down 1.4% at $4,227.
Spot silver fell 1.4% to $64.48 per ounce, platinum lost 1.5% to $1,700.38, and palladium fell 0.8% to $1,212.67.
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"Traders are a little nervous with the market here... All markets across the board went into risk-off. And I think that risk-off right now is why you're seeing a down in gold," said Bob Haberkorn, senior market strategist at RJO Futures.
"Gold and silver remain under pressure until we get clearer guidance from the Fed," Haberkorn added.
MCX gold price may find support at Rs. 1,49,000 level, while resistance is placed at Rs. 1,51,000. The outlook remains negative, and a ‘sell on bounce’ strategy can be deployed. Support for MCX silver price is seen at Rs. 2,30,000 per kg, while resistance is seen at Rs. 2,40,000 level.