Gold, Silver Prices In India Outlook: Yellow Metal Prices May Rise From July 8-12, Cheapest Gold At Rs 5,535

Gold prices in India remained unchanged on July 7th after rising sharply from Rs 5,300 to Rs 7,100 across 24K, 22K and 18K the previous day. At the same time, 1 kg silver is at Rs 94,800 at retail stores in India. Last week, both gold prices and silver prices witnessed strong upward movements tracking a spike in international prices as hopes for two rate cuts by the US Federal Reserve in 2024, kept investors bullish for these precious metals. In the trading week from July 8-12, experts are bullish on yellow metal and silver.

Currently, 24K of 10 grams is at Rs 73,800, while 22K and 18K of 10 grams are at Rs 67,650 and Rs 55,350 respectively.

The cheapest gold is 1 gram in 18K which is priced at Rs 5,535 currently. While the most expensive gold is at Rs 7,38,000 in 24K of 100 grams.

Meanwhile, the silver price is at Rs 94,800 for 1 kg, Rs 9,480 for 100 grams and Rs 948 for 10 grams. The cheapest silver is in 1 gram which is available at Rs 94.80.

In the first week of July 2024, gold prices across carats jumped by over 2% each.

In its WISE Money report, SMC Global Securities said, "On the commodity market front, after a two-week pause, the CRB Index has rebounded from its low. The Dollar Index briefly dipped to 105, while the US 10-year Treasury yield peaked at 4.5% before retracting some gains. In the bullion market, both gold and silver experienced strong upward movements, with gold closing near $2,370 and silver approaching $31. On the MCX, gold and silver closed around Rs.72,500 and ₹90,600, respectively. Gold is expected to trade within the range of ₹70,700-₹74,000, while silver may range between ₹90,000-₹96,000."

According to SMC, gold prices experienced gains and posted their second straight weekly increase as traders awaited U.S. employment data to gauge the trajectory of potential Federal Reserve interest rate cuts. The U.S. dollar posted a weekly decline, making dollar-priced bullion more attractive to buyers holding other
currencies.

Further, SMC highlighted that weaker U.S. macroeconomic data has benefited gold, keeping it in a consolidation mode above $2,300. If the jobs data underperforms, investors may anticipate a possible September rate cut from the Fed, potentially pushing gold towards the $2,400 level.

Earlier, this month, SMC pointed out that data pointed to a surprise contraction in services activity and disappointing private employment numbers in the US, supporting a dovish outlook on Fed policy. Currently, traders are pricing in about a 73% chance of a Fed rate cut in September, according to the CME FedWatch Tool.

SMC explains that lower interest rates reduce the opportunity cost of holding non-yielding gold.

Furthermore, investors are also monitoring political developments in Europe, where the Labour Party is set to win a massive majority in the UK general election, while Marine Le Pen's National Rally party is expected to fall short of a majority in France's parliamentary election, SMC's note said.

Additionally, SMC also said, that escalating geopolitical tensions in the Middle East, with Israel facing conflicts against both Hamas and Hezbollah, continue to lift safe-haven demand for bullion.

For the trading week from July 8th to 12th, SMC said, on the Comex, gold prices may find support near $2,320 and face resistance around $2,440. Silver is expected to trade in the range of $29.00-$31.80.

In India, SMC said that gold prices may continue their bullish movement, taking support near 71,500 and facing resistance near 73,800. Silver may trade within the range of 90,000-97,000.