Gold rates in India experienced a significant decline on July 7, with MCX gold August futures falling ₹1,417 or 0.96% to ₹1.45 lakh per 10 grams as of latest trading, following the previous session's decline of ₹1,500 to ₹1.50 lakh per 10 grams. According to The Hindu BusinessLine, the precious metal closed at ₹1.45,500 per 10 grams in futures trade amid a fall in spot demand. Silver prices underperformed significantly, with MCX silver September futures dropping ₹3,648 or 1.55% to ₹2.32 lakh per kg, extending the previous session's decline of ₹5,000 to ₹2.40 lakh per kilogram. The sharp decline was attributed to renewed geopolitical tensions after a tanker was reportedly struck by a projectile near the Strait of Hormuz, with Iran reportedly firing at least two missiles at commercial ships transiting the strait. Gold continued to slip in global markets after renewed attacks on shipping in the Strait of Hormuz, heightening risks for vessels carrying oil and natural gas via the waterway. The precious metal dipped as much as 0.9% to trade around $4,122.10 per ounce in New York, having given up 1.04% on Monday, as reported by CNBC TV18.
Gold futures opened marginally lower on Monday, July 6, with MCX gold August futures trading 0.01% lower at ₹1,47,135 per 10 grams as reported by The Economic Times. The precious metal snapped a four-session winning streak as investors booked profits despite easing concerns about US Federal Reserve rate hikes. MCX silver September futures dropped 0.5% to ₹2,37,264 per kg, with the trading session recording a business turnover of 1,325 lots. On Tuesday, gold futures dropped by ₹1,417 to ₹1,45,500 per 10 grams in futures trade amid a fall in spot demand, as reported by The Hindu BusinessLine. Silver prices on Tuesday fell by ₹3,648 to ₹2,32,451 per kilogram in futures trade as participants reduced their bets, with business turnover of 1,587 lots on the Multi Commodity Exchange. Gold remained steady in global markets as well, with spot gold little changed at $4,160.60 per ounce after gaining more than 2% last week and snapping a four-week losing streak. Spot silver edged lower to $62.24 per ounce in international markets. As per The Hindu BusinessLine, the market remained range-bound as investors balanced lingering geopolitical risks in West Asia against a stronger greenback and expectations surrounding the US Federal Reserve's monetary policy. Oil gained, raising concerns around inflation and increased possibility of interest-rate hikes — a negative for gold, which doesn't pay interest. The latest decline is attributed to a stronger US dollar, which is currently trading near the 100.97 mark, offsetting the positive support from lower crude oil prices and a decline in the probability of a rate hike to 50% from earlier 66% probability expectations.
Gold prices showed uniform strength across all major Indian cities on July 7, with 22-carat gold priced at ₹1,07,320-1,07,720 per 8 grams and 24-carat gold at ₹1,12,688-1,13,104 per 8 grams nationwide. As per The Hindu BusinessLine, Delhi recorded the lowest rates at ₹1,07,320 for 22-carat and ₹1,12,688 for 24-carat, while Chennai commanded the highest prices at ₹1,07,720 and ₹1,13,104 respectively. The price decline reflects hopes of a sustained global economic recovery, bolstered by a hopeful end to the war in the Middle East. Mumbai gold prices were ₹13,415 for 22-carat and ₹14,086 for 24-carat per gram, with 8-gram rates at ₹1,06,920 and ₹1,12,688 respectively. Ahmedabad gold prices were ₹13,419 for 22-carat and ₹14,090 for 24-carat per gram, with 8-gram rates at ₹1,07,352 and ₹1,12,720 respectively. Bengaluru gold prices were ₹13,425 for 22-carat and ₹14,096 for 24-carat per gram, with 8-gram rates at ₹1,07,400 and ₹1,12,768 respectively. Kolkata gold prices were ₹13,465 for 22-carat and ₹14,138 for 24-carat per gram, with 8-gram rates at ₹1,07,720 and ₹1,13,104 respectively. Hyderabad gold prices were ₹13,400 for 22-carat and ₹14,070 for 24-carat per gram, with 8-gram rates at ₹1,07,200 and ₹1,12,560 respectively.
Despite the decline, DSP Netra's July market outlook maintains a neutral stance on both gold and silver, saying the recent correction has improved valuations but not enough to justify an overweight allocation. According to CNBC TV18, the report maintains that gold is trading around 10.7% below its theoretical fair value, while silver is about 21.8% below its theoretical value. However, the fund house said it would prefer to see a larger discount, stronger demand from ETFs, central banks or jewellery buyers, and a weaker US dollar before turning more positive on the two metals. Ravi Singh, Chief Research Officer at Master Capital Services, said MCX gold remains in a consolidation phase despite Tuesday's decline. "The overall technical structure remains constructive, with prices holding above the crucial ₹1.40 lakh per 10 grams support zone. Immediate resistance is seen near the 21-day exponential moving average around ₹1.48 lakh. A decisive breakout above this level could push prices towards the ₹1.50 lakh-₹1.51 lakh zone," Singh said. He added that global bullion prices weakened as uncertainty over the US interest rate outlook and persistent inflation kept investors cautious. Fresh geopolitical concerns following reports of a vessel being struck in the Strait of Hormuz supported the US dollar, limiting gains in gold. Markets are now awaiting the minutes of the US Federal Reserve's June policy meeting for fresh clues on the future interest rate path, which could determine the next move in bullion prices.
As reported by The Economic Times, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, recommends a buy on dips strategy for gold investments. The recommended entry zone is ₹1,46,000 with a stop-loss below ₹1,43,850 for gold, targeting ₹1,48,000-1,49,100. For silver, traders are advised to buy on dips in the ₹2,34,400-2,31,000 range with a stop loss below ₹2,27,000, targeting ₹2,41,000-2,44,000. This strategy mirrors broader market approaches, with traders maintaining buy-on-dips approach as long as the index holds above 24,000 for Nifty 50, while Bank Nifty needs to convincingly surpass the previous week's high of 58,700 to extend its upward journey. According to Mirae Asset ShareKhan, the precious metal is expected to maintain a positive bias on optimism over easing inflation and weak US jobs data, though expectations that the Fed could keep interest rates elevated for longer are likely to limit any sharp upside in prices. As per CNBC TV18, investors may want to avoid rushing into fresh purchases despite the correction, as the recent correction has improved valuations but not enough to justify an overweight allocation.
