Gold trades higher on MCX on July 20, driven by value buying as the US dollar eased modestly, even as crude oil prices remained elevated, fueling rate hike expectations by the US Federal Reserve. August gold futures rose 0.32% to Rs. 1,41,039. September silver futures gained 1% to Rs. 2,18,560. Meanwhile, Brent crude futures rose 2.62% to $90.41 per barrel. US West Texas Intermediate (WTI) advanced 2.39% to $84.36 per barrel.
According to the CME FedWatch Tool, traders now expect an 82% chance of a December rate hike compared to last week’s 73% by the US Federal Reserve.
24K gold rose by Rs. 17 to Rs. 1,43,460 per 10 grams, while 22K gold also advanced by Rs. 15 to Rs. 1,31,500. By city, Mumbai and Kolkata mirrored prices at Rs. 1,43,460, while Delhi was at Rs. 1,43,610, and Chennai at Rs. 1,43,460.
US gold prices fell on Monday as the escalation of the Middle East war pushed Brent crude above $90 a barrel, heightening inflation concerns.
Spot gold was down 0.1% at $4,014.53 per ounce. US gold futures for August delivery were steady at $4,019.80.
Spot silver gained 1.9% to $56.95 per ounce, platinum was up 0.5% at $1,599.97 and palladium eased 0.2% to $1,244.50.
Also Read: How to Find a Gold IRA Company That isn’t a Scam?
"The weekend escalations increase the risk of a potential full-scale offensive by both sides, which potentially threatens gold prices as the opportunity cost for holding the metal gets higher if this ongoing stagflation fear starts to take hold," said Kelvin Wong, a senior market analyst at OANDA.
Internationally, gold has support at $3,989 and $3,945, while resistance is at $4,040 and $4,074 per troy ounce, and silver has support at $55.50 and $54.40, while resistance is at $57.50 and $58.80 per troy ounce.
On MCX, gold has support at Rs. 1,40,400 and Rs. 1,39,650 and resistance is at Rs. 1,41,500 and Rs. 1,42,200, while silver has support at Rs. 2,14,400 and Rs. 2,11,000 and resistance at Rs. 2,18,800 and Rs. 2,21,000.