Gold trades modestly higher on MCX on July 17 amid weak global cues and firm spot demand. August gold futures rose 0.07% to Rs. 1,40,440. September silver futures declined 0.25% to Rs. 2,15,476. Meanwhile, Brent crude futures rose 1.01% to $85.08 per barrel. US West Texas Intermediate (WTI) advanced 1.15% to $79.86 per barrel.
According to the CME FedWatch Tool, traders now expect a 73% chance of a December rate hike by the Fed.
24K gold fell by Rs. 76 to Rs. 1,42,530 per 10 grams, while 22K gold also declined by Rs. 70 to Rs. 1,30,650. By city, Mumbai and Kolkata mirrored prices at Rs. 1,42,530, while Delhi was at Rs. 1,42,680, and Chennai at Rs. 1,43,450.
US gold was on track for its biggest weekly loss in six weeks on Friday, as escalating US-Iran conflict lifted oil prices and added to inflationary pressures.
Spot gold was up 0.5% at $3,988.20 per ounce. US gold futures for August delivery were steady at $3,992.
Spot silver fell 0.5% to $55.22 per ounce, platinum lost 0.7% to $1,605.62 and palladium eased 0.4% to $1,244.86.
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"Even with tamer CPI and PPI figures, the oil price spike this week meant traders simply couldn't celebrate the cooler inflation numbers," said Tim Waterer, chief market analyst at KCM Trade.
"Geopolitical risks in the Middle East are still present, with inflation and yield concerns being the dominant forces holding gold back."
Internationally, gold has support at $3,955 and $3,910, while resistance is at $4,034 and $4,080 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. 1,39,600 and Rs. 1,38,800, and resistance is at Rs. 1,41,100 and Rs. 1,42,000, while silver has support at Rs. 2,14,000 and Rs. 2,11,100 and resistance is at Rs. 2,18,800 and Rs. 2,21,000.