Gold prices in India saw a marginal decline in early trade on Tuesday, influenced by profit booking and anticipation of key inflation data from India and the US. The easing of US tariffs on imported gold bars also impacted sentiment, while silver prices posted modest gains.
Gold prices in the domestic futures market started Tuesday’s session slightly lower, as traders booked profits ahead of the release of consumer price index (CPI) inflation data for July. On the Multi Commodity Exchange of India (MCX), October gold futures were trading 0.07% down at ₹1,00,250 per 10 grams around 9:15 AM, while September silver contracts rose 0.24% to ₹1,13,572 per kilogram.
The decline in gold prices came amid renewed optimism in global markets following signals that the prolonged Russia–Ukraine conflict might be nearing resolution. Adding to this sentiment, US President Donald Trump announced on Monday that imported gold bars would be exempt from tariffs, easing concerns that had recently pushed gold to record highs.
Investors are now focused on inflation figures from both India and the United States, set to be released later today. India’s July retail inflation is projected to slow to 1.4%, down from 2.10% in June. In the US, CPI is expected to rise to 2.8% year-on-year in July from 2.7% in the previous month.
The inflation readings are significant as they may influence the US Federal Reserve’s interest rate decisions. According to the CME FedWatch Tool, traders are pricing in an 85% probability of a Fed rate cut in September.
In addition, market participants are monitoring the upcoming meeting between President Trump and Russian President Vladimir Putin in Alaska on August 15, aimed at discussing potential pathways to end the ongoing war. On the trade front, Trump has also extended the truce with China by another 90 days, providing some relief to global markets.
Technical Overview:
- Gold (MCX): Support at ₹99,900–99,475, resistance at ₹1,00,650–1,01,100.
- Silver (MCX): Support at ₹1,12,700–1,12,000, resistance at ₹1,14,000–1,14,650.
- International Gold: Support at $3,389–3,360 per troy ounce, resistance at $3,434–3,455.
- International Silver: Support at $37.50 — 37.20, resistance at $38.00 — 38.40 per troy ounce.
These levels will remain closely watched by traders as market volatility is expected to rise with the release of inflation data and geopolitical developments.
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