Gold Prices Today: Yellow metal set for third weekly gain, holds above $2,400 pivot on US Fed rate cut bets

Gold Prices Today: The yellow metal held above the key $2,400 per ounce pivot on Friday, July 12, and were headed for their third straight weekly gain, as investors grew confident that the US federal Reserve was on track to lower interest rates soon after the latest consumer price-based inflation data.

Spot gold was steady at $2,413.73 per ounce. The bullion was last up nearly  one per cent for the week so far. US gold futures last edged 0.1 per cent lower to $2,419.10. Elsewhere, spot silver last slipped 1.6 per cent to $30.93 per ounce after scaling an over one-month high in the previous session.

Platinum dipped 0.7 per cent to $997.25 and palladium slipped 2.1 per cent to $974.18. Both metals were set to register weekly declines. Coming to domestic prices, gold futures last traded 0.02 per cent higher at ₹73,285 per 10 grams on the multi-commodity exchange (MCX).

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-Gold prices rallied to their highest since May 22 on Thursday, July 11, after an unexpected decline in US consumer prices. The data strengthened the view that the disinflation trend has resumed and lifted hopes for rate cuts by the US Fed.

-US producer prices increased moderately in June, further confirming that inflation had resumed its downward trend and strengthening the case for a September interest rate cut. Markets are now pricing in a 96 per cent chance of a rate cut in September, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.

Where are gold prices headed?

Commodity analysts said that gold and silver prices surged sharply on Thursday evening following the release of the US CPI, which suggested the possibility of the Federal Reserve lowering borrowing costs. Consequently, US Treasury yields and the dollar index dropped, providing support for precious metals. 

Also Read: US inflation cools for third straight month at 0.1% in June; Wall Street lifts Fed rate cut bets for September

‘’Easing inflation in the US and profit-taking in the dollar index are likely to bolster gold and silver prices. We anticipate that gold and silver prices will remain in today’s session. However, the overall trend appears firm,'' said Rahul Kalantri, VP Commodities, Mehta Equities Ltd

‘’Gold has support at $2,388-$2,370 and resistance at $2,427-$2,445. Silver has support at $31.00-$30.80 and resistance at $31.30-$31.52. In INR terms, gold has support at ₹73,050- ₹72,810 and resistance at ₹73,520- ₹73,690. Silver has support at ₹93,440- ₹92,880 and resistance at ₹94,840- ₹95,520,'' added Kalantri.