Gold traded higher on MCX on July 21 amid a decline in crude oil prices and reports of diplomatic efforts to ease tensions in the Middle East supported the precious metals. August gold futures rose 0.65% to Rs. 1,42,300. September silver futures gained 1.09% to Rs. 2,20,775. Meanwhile, oil prices fell below $90. Brent crude futures declined 0.80% to $88.51 per barrel. US West Texas Intermediate (WTI) edged lower by 0.46% to $82.10/ barrel.
According to the CME FedWatch Tool, traders now expect a 64% chance of a September rate hike by the US Federal Reserve.
24K gold rose by Rs. 76 to Rs. 1,44,220 per 10 grams, while 22K gold also advanced by Rs. 70 to Rs. 1,32,200. By city, Mumbai and Kolkata mirrored prices at Rs. 1,44,220, while Delhi was at Rs. 1,44,370, and Chennai at Rs. 1,44,220.
US gold rose on Tuesday as investors weighed diplomatic efforts to ease the US-Iran conflict, which could influence oil-driven inflation risks.
Spot gold rose 0.9% to $4,042.69 per ounce. US gold futures for August delivery were up 0.8% at $4,047.40.
Spot silver gained 2.2% to $57.67 per ounce, platinum was up 0.8% at $1,607.20 and palladium rose 0.8% to $1,263.73.
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"It looks like gold is trying to find a base somewhere around this $4,000 level and is going to try to re-engage the upside from there," said head of global macro at Tastylive, Ilya Spivak.
"These headlines from the Middle East seem to have some degree of knock-on, though it is increasingly only being paid attention to in a passing kind of way."
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 $56.20 and $55.50, while resistance is at $57.70 and $58.50 per troy ounce.
On the MCX, gold has support at Rs. 1,40,850 and Rs. 1,40,400, and resistance at Rs. 1,42,000 and Rs. 1,43,650, while silver has support at Rs. 2,16,000 and Rs. 2,14,400 and resistance at Rs. 2,20,000 and Rs. 2,23,100.