Gold, silver prices this week: Gold and silver rates were under pressure in the overseas markets this week as investor sentiment remained cautious amid renewed geopolitical conflict and uncertainty over the US Federal Reserve’s policy path.
The domestic MCX gold futures for the August contract price dropped 0.28 per cent to Rs 1,44,900 per 10 grams, and silver futures for the September contract inched 0.17 per cent to Rs 2,26,00 per kilogram (09:27 AM on July 10) from their previous close.
Gold rates
Gold rates traded in a narrow range on Friday (July 10) after gaining in the previous session, as a weaker US dollar helped support bullion prices. However, persistent concerns over rising oil prices and the possibility of higher US interest rates kept gains in check, leaving the precious metal on track for a weekly loss. Despite the subdued trading, gold has declined more than 1 per cent over the past week.
The yellow metal has fallen by more than 1 per cent over the past seven days despite Friday’s stable performance.
As of 6:35 AM yesterday, spot gold was trading at USD 4,120.12 per ounce, moving within a limited trading band of around USD 17 during the session. Spot silver, meanwhile, gained 0.2 per cent to USD 60.10 per ounce, although it too was heading for a weekly decline.
In the previous session, gold futures on the Multi Commodity Exchange (MCX) ended slightly higher at Rs 1,45,350 per 10 grams.
Trump’s remarks on Iran ease geopolitical concerns
Global markets also kept a close watch on geopolitical developments after US President Donald Trump indicated that Iran was willing to return to the negotiating table.
“They called a little while ago. They want to make a deal so badly,”
Trump said, hinting that diplomatic discussions could resume.
His remarks helped reduce immediate concerns about escalating tensions in the region, though investors remained cautious as the situation continues to evolve.
Higher oil prices keep gold under pressure
Crude oil prices continued to climb this week, strengthening fears that rising energy costs could add to inflationary pressures worldwide.
WTI crude futures advanced 4.7 per cent this week.
Brent crude futures gained 5.7 per cent over the same period.
Higher inflation often prompts central banks to maintain elevated interest rates, a scenario that generally hurts gold because the metal does not generate interest income.
Rate Hike Expectations Continue to WeighGold also remained under pressure as investors increasingly expect the US Federal Reserve to keep monetary policy tight.
According to the CME FedWatch Tool, financial markets are assigning roughly a 65 per cent probability of a rate hike at the September FOMC meeting. Investors also anticipate at least one more interest rate increase during 2026.
Higher borrowing costs usually make interest-bearing assets more attractive than gold, reducing demand for the precious metal.
The US Dollar Index (DXY), which tracks the greenback against six major global currencies, slipped 0.2 per cent to 100.77 and was also heading for a slight weekly decline.
A weaker dollar generally benefits gold by making it cheaper for buyers holding other currencies, supporting international demand.
Investors are now focused on upcoming US economic data, which could influence expectations for the Federal Reserve’s next policy moves.
Key indicators, including inflation, employment and economic growth figures, are expected to play an important role in shaping the outlook for both the US dollar and gold prices in the weeks ahead.
