Gold and silver prices traded mixed, with volatility in morning trade on the MCX on Friday (17 July), amid weak global cues and tepid spot market demand.
MCX gold August futures were 0.26% up at ₹1,40,718 per 10 grams, while MCX silver September futures were 0.23% down at ₹2,15,512 per kg around 9:05 am.
In the previous session, the MCX gold August futures declined 1%, and the silver September futures contract plunged 2%.
In the US, gold prices looked set for their biggest weekly loss in six weeks on Friday, losing more than 3% for the week.
The biggest challenge for gold and silver is the US-Iran tension, which has lifted crude oil prices and revived inflation fears, in turn driving fears of rate hikes by the US Federal Reserve in the near future.
Gold is considered a hedge against inflation, but its price tends to fall when interest rates are high because investors turn to other safe-haven assets, such as bonds, since gold is a non-yielding asset.
On the geopolitical front, the US has expanded its airstrikes on Iran early Friday, as per reports. President Donald Trump on Thursday (local time) reaffirmed Washington’s victory in the ongoing strikes against Iran.
“Gold is falling as escalating tensions in the Middle East have driven oil prices higher, keeping inflationary pressures and interest rate concerns at the forefront,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted.
“The US launched multiple strikes against Iran this week, while Trump warned that the US could target the country’s infrastructure. Iran responded by launching attacks on US bases in neighbouring countries, fueling fears of further escalation and a prolonged disruption to energy supplies from the region,” Trivedi pointed out.
Meanwhile, the dollar index rose to 100.78 on Friday, making bullion expensive for buyers in overseas currencies. Crude oil prices continued trading near $85 per barrel.
Gold and silver prices: Key levels to watch
As per Trivedi, MCX gold August futures may rebound to ₹1,41,500 per 10 grams. However, he added that the undertone is bearish and prices may fall to ₹1,40,000.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile today.
Jain said 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 in today’s session.
MCX gold has support at ₹1,39,600 and ₹1,38,800, and resistance is at ₹1,41,100 and ₹1,42,000, while silver has support at ₹2,14,000 and ₹2,11,100 and resistance is at ₹2,18,800 and ₹2,21,000, said Jain.
According to Ravi Singh, Chief Research Officer at Master Capital Services, MCX gold prices remain below the 21-day and 55-day EMAs, suggesting the broader short-term trend remains bearish.
The prevailing lower-highs and lower-lows structure indicates that sellers continue to hold the upper hand.
“Immediate support is placed near the ₹1,40,400 to ₹1,40,000 zone, and a decisive break below these levels could accelerate the decline towards ₹1,36,000. On the upside, ₹1,45,000 remains a key resistance level, and the preferred strategy continues to be sell on rise as long as prices trade below this level,” said Singh.
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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.
