Gold Rates & Silver Rates Today Update: MCX Gold & Silver Price To Trade Negative Next Week?

Gold rates and silver rates in India recorded a weekly decline, tracking a weaker trend in the global market. Spot gold has witnessed a 1.5% weekly drop, while spot silver has performed the worst with around 4% weekly decline. This is due to the escalating tensions between the US and Iran, which heightened the rate hike expectations. The odds of a rate hike is now 60% in September policy of US Federal Reserve.

MCX gold ended the week below Rs 1,43,500 and MCX silver ended below Rs 2.23 lakh per 1Kg.

The trend ahead is expected to be cautious and volatile, with MCX gold ranging between Rs 1.42 lakh to Rs 1.45 lakh next week. Investors will focus on US CPI data, which will give much more clarity in interest rates trajectory.

Investors will closely watch US inflation data due next week and Fed Chair Kevin Warsh's testimony for further policy cues. Minutes from the Fed's June meeting revealed growing inflation concerns, with some policymakers having favored a rate hike before rates were left unchanged. Meanwhile, gold faced a wide discount in India this week due to price volatility, while demand in China remained steady. China's central bank reported its largest monthly increase in gold reserves in over 2-1/2 years in June, as per Trading Economics.

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