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Gold prices on MCX traded lower on June 11 amid weakness in global markets as tensions in the Middle East escalated, fueling inflation concerns. Gold’s August futures fell 0.36% to Rs. 1,47,494 per 10 grams. Silver July futures declined 0.56% to Rs. 2,34,177 per kg. Meanwhile, Brent crude futures rose 1.85% to $94.82 a barrel. US West Texas Intermediate (WTI) gained 2.11% to $91.93 a barrel.
According to the CME FedWatch tool, traders now expect a more than 70% chance of a Federal Reserve interest rate hike by December.
24K gold fell by Rs. 213 to Rs. 1,45,640 per 10 grams, while 22K gold fell from Rs. 195 to Rs. 1,33,500. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,45,640, while Delhi was at Rs. 1,45,790, and Chennai at Rs. 1,47,280.
US gold prices rebounded from a six-month low on Thursday on short covering as investors awaited a key US inflation report for clues about Fed policy outlook.
Spot gold rose 0.4% to $4,089.12 per ounce after hitting its lowest since November 21 at $4,022.09 earlier in the day.
US gold futures for August delivery were down 0.5% at $4,111.10. Spot silver rose 0.3% to $63.86 per ounce, platinum gained 0.6% to $1,673.75, and palladium climbed 2.2% to $1,239.89.
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"With prices hurtling towards $4,000, it's an obvious level of support that could prompt bears to book a quick profit or tempt battered bulls from the sideline," said Matt Simpson, a senior analyst at StoneX.
"The US dollar index failed to gain much ground following Wednesday's CPI report. So, unless there are any nasty surprises in PPI, gold could be due a technical bounce over the near term."
The next important support is seen near Rs. 1,45,000, while Rs. 1,40,000 remains a strong long-term demand zone. On the upside, Rs. 1,55,000 continues to be a major resistance level, and as long as prices remain below this mark, the overall sentiment is likely to stay weak.
