Gold and silver price today: Rates of gold and silver traded mixed in early deals on the MCX on Friday, 10 July, amid weak global cues and trepid spot market demand.
MCX gold August delivery was 0.27% down at ₹1,44,913 per 10 grams, while MCX silver September contracts were 0.08% up at ₹2,26,555 per kg around 9:15 am.
International gold prices appeared set for a weekly decline as concerns rise that fresh US-Iran tensions could drive up inflation and push the U.S. Federal Reserve to hike rates this year.
The recently released minutes from the Fed’s June meeting showed policymakers’ concern about the Middle East conflict and elevated inflation.
As per Reuters, CME’s FedWatch tool shows traders see a 64% chance of a rate hike in September, up from around 54% a week earlier.
While gold is considered a hedge against inflation, it tends to decline during periods of monetary tightening because it is a non-yielding asset.
Airstrikes have intensified across West Asia even as the US said technical talks with Iran will continue.
As per reports, the US launched fresh strikes targeting Iran early on Thursday, and Tehran responded by targeting Washington’s regional allies in an exchange of fire that threatened the interim deal that was intended to help end the war in the Middle East.
Ravi Singh, Chief Research Officer at Master Capital Services, said that as long as gold prices continue to hold above ₹1,40,500, the overall structure favours a buy-on-dips approach.
“Immediate resistance is placed near the 21-day EMA around ₹1,47,000– ₹1,48,000, and a sustained move above this zone could strengthen bullish momentum in the coming sessions,” said Singh.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,110 and $4,074, while resistance is at $4,165 and $4,200 per troy ounce, and silver has support at $59.80 and $58.50, while resistance is at $61.40 and $63 per troy ounce in today’s session.
MCX gold, as per Jain, has support at ₹1,44,400 and ₹1,43,650, and resistance is at ₹1,46,150 and ₹1,47,000, while silver has support at ₹2,24,000 and ₹2,21,000 and resistance at ₹2,29,100 and ₹2,32,000.
“We suggest booking profits in long positions of gold and silver on every rise ahead of the weekend and uncertainty on the U.S. and Iran peace deal,” said Jain.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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