Gold prices retreated on Tuesday as the US dollar edged up from recent lows, making the yellow metal less attractive for holders of other currencies. Silver remained volatile amid mixed global cues.
Gold Price Movement
On the Multi Commodity Exchange (MCX), gold futures for August delivery fell by 0.3% to ₹72,850 per 10 grams, down from the previous close of ₹73,070. In the international market, spot gold slipped 0.2% to $2,355 per ounce, while US gold futures traded flat at $2,370.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.1% to 104.6 after hitting a three-week low of 104.3 in the previous session. A stronger dollar makes gold more expensive for foreign buyers, weighing on demand.
Silver Volatility Continues
Silver prices showed mixed trends, with MCX silver futures for July delivery trading at ₹89,200 per kg, down 0.5% from the previous close. In the international market, spot silver edged up 0.1% to $30.85 per ounce after falling 1.5% in the prior session.
According to analysts, silver is facing headwinds from weak industrial demand, especially from China, but is finding support from safe-haven buying amid geopolitical tensions. The metal remains highly sensitive to economic data and central bank policy signals.
City-Wise Gold Rates
Here are the gold rates (24K and 22K per 10 grams) in major Indian cities on Tuesday:
- New Delhi: 24K ₹73,450, 22K ₹67,350
- Mumbai: 24K ₹73,300, 22K ₹67,200
- Chennai: 24K ₹73,550, 22K ₹67,450
- Kolkata: 24K ₹73,350, 22K ₹67,250
- Bengaluru: 24K ₹73,400, 22K ₹67,300
- Hyderabad: 24K ₹73,380, 22K ₹67,280
- Ahmedabad: 24K ₹73,320, 22K ₹67,220
- Jaipur: 24K ₹73,420, 22K ₹67,320
Outlook and Expert Views
Market participants are now awaiting the US Federal Reserve's minutes from its June meeting, due later this week, for further clues on the interest rate trajectory. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold.
"Gold is likely to remain under pressure in the near term as the dollar finds support from expectations of a hawkish Fed," said an analyst at Anand Rathi Commodities. "However, any escalation in geopolitical tensions could trigger safe-haven buying and support prices."
Silver may continue to see volatile swings, with support at $30 per ounce and resistance at $31.50. Industrial demand and economic data from China will be key drivers for the metal.
