Gold prices decreased by 1.47% over the week following the Federal Reserve’s meeting minutes that hinted at prolonged higher interest rates. Despite this, on Friday, MCX gold August futures remained stable, while MCX silver July futures saw a slight 0.01% increase. The closing prices stood at Rs 1,43,480 for gold futures and Rs 2,22,680 for silver futures.
Renewed tensions in the Middle East supported precious metal risk premiums, but concerns over a stricter US monetary policy limited price surges. Recent military actions between the United States and Iran escalated tensions, with President Trump signaling further military measures, sanctions, and blockades. Additionally, a stronger dollar hindered the recovery of precious metals.
Analysts noted that the Federal Reserve’s meeting minutes highlighted persistent inflation, extending beyond energy and tariffs to various economic sectors like transportation and services. The Fed is likely to maintain a stance of higher interest rates for an extended period, with the possibility of further tightening if inflation does not ease. Lower energy costs and weaker job growth had previously suggested a gradual decline in inflationary pressures.
Market participants identified immediate resistance levels at $4,200–$4,230 for COMEX Gold and Rs 1,45,000–Rs 1,45,500 for MCX Gold. For MCX Silver, the immediate resistance zone is Rs 2,26,000–Rs 2,27,000, with support at Rs 2,21,000–Rs 2,20,000.
