Gold prices fell sharply on the Multi Commodity Exchange (MCX) on Friday and are now expected to decline further. This comes as tensions in the Middle East show signs of easing after the Israeli-Iran ceasefire, reducing investor risk appetite.
According to HDFC Securities, gold prices dropped by Rs 930 to Rs 97,670 per 10 grams in the national capital on Friday due to selling by traders. Gold of 99.5% purity fell by Rs 850 to Rs 97,200 per 10 grams (including all taxes). In the previous session, gold had closed at ₹98,050 per 10 grams. Meanwhile, silver prices declined by Rs 100 to Rs 1,03,000 per kg (including all taxes).
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What Do Experts Say?
In the international market, COMEX gold was trading over 1.5% lower at $3,270 per ounce, signaling a second consecutive weekly decline. Jigar Trivedi, analyst at Reliance Securities, said gold prices have fallen due to easing global risks and growing optimism in global markets. As a result, investors’ appetite for safe-haven assets has diminished.
Factors That May Influence Prices
Several factors could impact gold prices next week, including economic data releases from the US and Europe. Jigar Trivedi noted that the key levels to watch for COMEX gold are support at $3,230 to $3,200 per ounce. For August futures on MCX, gold prices may decline to between Rs 94,800 and Rs 94,000 per 10 grams, he added.
According to Manish Sharma, Regional Vice President of Commodities and Currency at Anand Rathi Shares and Stock Brokers, investors are awaiting the release of the US Personal Consumption Expenditures (PCE) Price Index for further clues about the Federal Reserve’s interest rate outlook.