Gold and silver futures experienced significant declines on MCX Friday, with gold (June) dropping ₹800 to ₹1,58,816 per 10 grams and silver (July) sliding ₹1,617 (0.6%) to ₹2,73,266 per kg, according to The Economic Times. Latest data shows MCX gold June futures were down 0.21% at ₹1,60,080 per 10 grams and silver July futures were 0.39% down at ₹2,74,480 per kg around 9:35 am, as reported by Mint. This represents a reversal from the modest gains recorded in the previous session, as both precious metals opened on a weak note weighed down by multiple global factors. In international markets, spot gold was down 0.3% at $4,527.60 per ounce as of 0411 GMT, while US gold futures for June delivery lost 0.3% to $4,529.10, as reported by CNBC TV18. Spot silver fell 0.2% to $76.53 per ounce, but was headed for a weekly gain of 0.8%.
The decline was attributed to a stronger dollar hovering near a six-week high, rising oil prices fueling Fed rate hike fears, and uncertainty surrounding the Iran war, as reported by The Economic Times. The firmer dollar made dollar-denominated bullion more expensive for buyers using other currencies, while reports indicating that Iran wants to retain its enriched uranium domestically have renewed concerns that the conflict may drag on, prolonging disruptions to oil supplies. Edward Meir, an analyst at Marex, noted that "What's been driving (gold) lower has been the stronger dollar, which in turn is being elevated by ongoing high interest rates pretty much around the world." US Secretary of State Marco Rubio said there had been "some good signs" in talks with Iran, although Tehran's uranium stockpile and control over the Strait of Hormuz remained sticking points. Oil prices climbed as investors doubted the prospects of a breakthrough in the US-Iran peace talks.
Markets are pricing in a Fed rate hike before year-end with a 60% chance of a move by December, according to CME Group's FedWatch tool, as reported by CNBC TV18. US President Donald Trump will swear in Kevin Warsh as the Fed chair on Friday at the White House, the Trump administration said. Elevated oil prices are stoking inflation risks, increasing chances of interest rates staying higher for longer. While gold is traditionally seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal. Richmond Fed President Thomas Barkin said on Thursday that "How businesses and consumers respond to ongoing economic shocks will determine if the Fed can 'look through' current high inflation or needs to consider raising interest rates."
Oil prices resumed their rally on Friday after declining for three straight sessions as investors weighed mixed messaging on Iran peace deal negotiations, according to CNBC. July futures for the international benchmark, Brent crude, gained 1.9% to $104.52 a barrel in early Asia trading, while US West Texas Intermediate futures for June advanced 1.5% at $97.81 per barrel. The deal is not looking to close out anytime soon, as statements from the US had signalled the peace deal was imminent, but the Iranian leadership's reported stance of keeping enriched uranium within their country has raised worries of an extended conflict. This keeps oil supplies disrupted for longer, with oil prices continuing to trade higher amid the ongoing uncertainty. Platinum lost 0.5% to $1,955.66 and palladium fell 0.2% to $1,375.35, with both metals on course for a weekly loss.
In the retail market, gold is sold in 24-karat and 22-karat purity, with 24-karat gold considered the purest form and 22-karat commonly used for jewellery due to its durability. Gold prices in Mumbai show 24-karat gold at ₹1,59,770 per 10 grams and 22-karat at ₹1,46,456 per 10 grams, while silver 999 fine is priced at ₹2,74,580 per kg. Other major cities show similar pricing patterns, with New Delhi having 24-karat gold at ₹1,59,490 and 22-karat at ₹1,46,199 per 10 grams, and Chennai showing 24-karat at ₹1,60,170 and 22-karat at ₹1,46,823 per 10 grams. These prices reflect the current market dynamics and provide a comprehensive view of gold's retail availability across different Indian cities.
