Gold prices in India have fallen today, despite global prices rising. On Thursday, gold dropped to Rs 96,980 per 10 grams, down by Rs 109 compared to the previous session. This drop comes even though gold prices in international markets went up after the U.S. Federal Reserve raised concerns about inflation and challenges in the job market. Indian investors are also cautious ahead of upcoming trade talks between the U.S. and China this weekend.
In international markets, gold prices increased significantly. Spot gold rose by 1.4%, reaching $3,409.76 per ounce, and U.S. gold futures went up by 0.7% to $3,416.70. These increases followed the Federal Reserve’s decision to keep interest rates the same, while warning about inflation and unemployment risks affecting the U.S. economy.
At 10:01 AM, MCX June gold futures were priced at Rs 96,981 per 10 grams. Despite this drop in India, silver futures saw a significant rise. July silver futures grew by Rs 479 to Rs 96,212 per kg.
Federal Reserve Chairman Jerome Powell expressed uncertainty about the U.S. economy’s future, with concerns about rising inflation and international political tensions. Market participants are now expecting the U.S. to reduce interest rates by 0.77% starting in September.
Gold is often seen as a safe investment during times of economic or political uncertainty, which is why it typically does well when interest rates are low. The renewed uncertainty due to the U.S.-China trade talks has made gold more attractive to investors.
The price of gold in India was initially up by over 100 points in the morning. It stayed above the 9 EMA (Exponential Moving Average) on daily charts, indicating a positive trend. Market experts are now waiting for jobless claims data to be released later in the day.
Representatives from the U.S. and China are set to meet in Switzerland over the weekend for trade talks. U.S. President Donald Trump mentioned that China requested the meeting but he is not willing to lower tariffs on Chinese imports as a negotiating tactic.
In other precious metals, silver prices rose by 1.1% to $32.82 per ounce, platinum increased by 0.8% to $982.05, and palladium remained steady at $971.95.
Market experts suggest that gold has support at $3,370–3,345 and resistance at $3,422–3,440. In India, gold has support at Rs 96,650–95,980 and resistance at Rs 97,950–98,390. Silver has support at Rs 94,880–94,150 and resistance at Rs 96,950–97,880.
