Gold Prices End Week Lower As Fed Rate Outlook Weighs On Bullion

Gold prices finished the week in negative territory, falling 1.47 per cent after investors interpreted the latest Federal Reserve meeting minutes as a sign that US interest rates could remain high for an extended period.

On Friday, MCX Gold August futures traded almost unchanged, while MCX Silver July futures posted a marginal gain of 0.01 per cent.

Gold futures last settled at Rs 1,43,480 per 10 grams, whereas silver futures closed at Rs 2,22,680 per kilogram.

Figures released by the India Bullion and Jewellers Association (IBJA) showed that the price of 24-carat gold dropped from Rs 1,45,512 per 10 grams at the beginning of the week to Rs 1,43,368 by Friday, reflecting sustained selling pressure.

Market analysts noted that the Federal Reserve minutes highlighted persistent inflation across several sectors, including transport, air travel and services, indicating that price pressures remain broader than previously expected.

Federal Reserve policymakers signalled that they will maintain a restrictive monetary policy and could raise interest rates further if inflation does not ease sufficiently.

Expectations of prolonged higher interest rates, coupled with a firmer US dollar, continued to weigh on bullion prices.

Escalating tensions in the Middle East provided some support to safe-haven assets after fresh US military action against Iran triggered retaliatory strikes on American bases.

Analysts expect COMEX Gold to encounter immediate resistance between $4,200 and $4,230, with the next major resistance located around $4,350-$4,400.

For MCX Gold, resistance is projected in the Rs 1,45,000-Rs 1,45,500 range, while immediate support is placed between Rs 1,41,000 and Rs 1,40,000.

For MCX Silver, traders are watching resistance around Rs 2,26,000-Rs 2,27,000, whereas the immediate support zone remains at Rs 2,21,000-Rs 2,20,000.

Also Read: IMD Forecasts Heavy Rain Across North, East And Central India; Issues Thunderstorm Warning