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Gold traded higher on MCX on July 3 amid positive global cues and easing expectations of rate hikes by the US Federal Reserve, fueling precious metals. August gold futures rose 1.47% to Rs. 1,47,900. September silver futures advanced 1.85% to Rs. 2,37,630. Meanwhile, Brent crude futures rose 0.61% to $72.34 a barrel. US West Texas Intermediate (WTI) gained 0.47% to $69.01 a barrel.
According to the CME FedWatch Tool, traders now expect a 54% chance of a September hike down from 66% by the US Federal Reserve.
24K gold rose by Rs. 322 to Rs. 1,47,000 per 10 grams, while 22K gold also advanced by Rs. 295 to Rs. 1,34,750. By city, Mumbai and Kolkata mirrored prices at Rs. 1,47,000, while Delhi was at Rs. 1,47,150, and Chennai at Rs. 1,49,500.
US Gold rose over 1% on Friday as investors dialled back expectations of Federal Reserve interest rate hikes following softer-than-expected US jobs data.
Spot gold was up 1.4% to $4,179.94 per ounce. US gold futures for August delivery gained 1.6% to $4,193.20.
Spot silver rose 2.3% to $62.43 per ounce, platinum gained 2.7% to $1,660.05, and palladium added 1.3% to $1,284.40.
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"What we're seeing is a reduction in the pricing of the US Federal Reserve rate hikes for the rest of this year, as well as Q1 next year, and that has been primarily driven by a rather lackluster US labour market data yesterday," said Kelvin Wong, a senior market analyst at OANDA.
However, "we have not seen a total erasure of rate hike pricing by the end of the year; there could still be another leg of potential gold weakness coming into play," with prices potentially reaching the $3,500/oz level, said Wong.
Internationally, gold has support at $4,084 and $4,040, while resistance is at $4,180 and $4,240 per troy ounce, and silver has support at $59.40 and $58, while resistance is at $63 and $64.40 per troy ounce.
On MCX, gold has support at Rs. 1,44,400 and Rs. 1,43,350 and resistance at Rs. 1,47,100 and Rs. 1,48,800, while silver has support at Rs. 2,33,000 and Rs. 2,26,600 and resistance at Rs. 2,37,700 and Rs. 2,41,000.
