Gold Price Prediction: Yellow metal dips to Rs 99,258/10 gms amid hawkish fed comments; analysts eye recovery

Gold prices opened lower after a hawkish commentary from the US Federal Reserve, which kept interest rates steady at 4.25–4.50%. On the Multi Commodity Exchange (MCX), August gold futures opened at Rs 99,258 per 10 grams, down Rs 279 or 0.28%.

Silver futures for July delivery also saw a modest dip, opening Rs 256 lower at Rs 1,08,310 per kg, a decline of 0.24%.

On Wednesday, gold and silver settled on a slightly weaker note in the domestic markets and on a mixed note in the international markets. Gold August futures contract settled at Rs 99,537 per 10 grams with a loss of 0.001% and the silver July futures contract settled at Rs 1,08,566 per kilogram with a loss of 0.39%.

Gold and silver showed high volatility and settled on a mixed note amid a hawkish stance of the U.S. Fed on interest rates. The U.S. Fed maintained a status quo on interest rates and left interest rates unchanged between the 4.25-4.50% range. The U.S. Fed also diminished the chances of aggressive interest rate cuts for the years 2025-2027.

Fed chairman Jerome Powell projected that inflation remains elevated, economic growth remains slower, and job markets are under pressure due to higher trade tariffs and global uncertainty.

“The U.S. Fed’s hawkish stance on interest rate cuts limits gains of precious metals. However, escalation in the Israel-Iran war and global central banks’ buying are supporting precious metal prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 99.03 mark, gaining 0.12 or 0.12%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions and gold prices could hold their key support level of $3,284 per troy ounce and silver prices could also hold $34.00 per troy ounce levels on a weekly closing basis,” he added.

The Fed Chairman maintained a neutral stance, noting readiness to respond to external risks. Meanwhile, US data showed a softening labor market and weak housing figures.

“Gold prices held their upward bias after the Federal Reserve decided to keep policy unchanged, aligning with market expectations,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

The Relative Strength Index (RSI) remains bullish but steady, suggesting further gains are possible.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 99,100-98,670 and resistance at Rs 99,900-1,00,350
• Silver has support at Rs 1,07,750-1,07,000 and resistance at Rs 1,09,200-1,10,000

Jain suggests buying gold on dips around Rs 99,000 with a stop loss of Rs 98,570 for a target of Rs 99,700.

Intraday trading strategy by Neha Qureshi:

• Buy MCX August Gold futures at Rs 99,500 with a stop loss of Rs 99,200 and a price target of Rs 1,00,000
• Buy MCX July Silver futures at Rs 1,08,000 with a stop loss of Rs 1,06,000 and a price target of Rs 1,11,000

Gold rates in physical markets

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,832/8 grams while pure gold (24 carat) prices stand at Rs 61,608/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,576/8 grams while pure gold (24 carat) prices stand at Rs 61,392/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,760/8 grams while pure gold (24 carat) prices stand at Rs 60,472/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,080/8 grams while pure gold (24 carat) prices stand at Rs 60,880/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)