Gold price today: Rates flat as tariff concerns ease, Fed rate cut hopes fade; key MCX levels to watch

Gold price today: Gold rates were lacklustre in the domestic futures market Friday (July 18) morning as easing tariff-related concerns, fading US Fed rate cut hopes, and low spot market demand weighed on the yellow metal's safe-haven demand. MCX Gold August 5 contracts traded flat at ₹97,477 per 10 grams around 9:40 AM. However, MCX Silver September 5 contracts were up 0.31 per cent at ₹1,12,680 at that time.

Gold prices have been volatile in recent times, despite a largely stable dollar and healthy US macro prints.

The dollar index looked set to extend gains to the second straight week. A stronger dollar makes bullion more expensive for other currency holders, denting its demand.

Easing tariff-related concerns also limits gold's gains. Experts say the markets have largely discounted a tariff war and hope for trade deals between the US and the world's top economies, including China, India, and the European Union, in the coming weeks.

The US Producer Price Index (PPI), the Fed's preferred inflation gauge, remained unchanged in June. However, the US Consumer Price Index (CPI) in June surged to its highest level since February.

Moreover, US retail sales, as Reuters reported, rose more than expected in June, advancing 0.6 per cent last month after an unrevised 0.9 per cent drop in May. US initial jobless claims dropped by 7,000 to a seasonally adjusted 221,000 for the week ended July 12. Economists polled by Reuters had forecast 235,000 claims for the week.

Experts expect the US Fed to keep rates unchanged until at least September this year. The next Fed policy outcome is due on July 30.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,310-3,285 and resistance at $3,360-3,380. Silver has support at $37.85-37.55 and resistance at $38.40-38.65.

In INR, Kalantri said gold has support at ₹97,120-96,780 while resistance is at ₹97,780-98,080. Silver has support at ₹1,11,780-1,11,050 while resistance at ₹1,12,950-1,13,700.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. 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.

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