Gold price prediction: Meltdown as prices fall by Rs 600/10 gram amid profit booking. Can bulls stage a comeback?
Gold rate today
On the MCX, the August Gold futures were trading at Rs 98,664, down by Rs 665 or 0.67% from the Thursday closing price. Meanwhile, gold contracts on the COMEX were hovering around $3,367.20 per troy ounce, plunging by $40.90 or 1.20%.
The movement in gold rates are inversely related to the dollar movement. When the Federal Reserve cuts interest rates, the returns on dollar-denominated assets like the US treasury bonds or savings accounts become less attractive and hence global investors may move their money to countries with higher interest rates, reducing demand for USD.
Commenting on the action, Pranav Mer, Vice President, EBG - Commodity & Currency Research at JM Financial Services said that the breather this week was on profit-booking, after the U.S. Fed's hawkish comments on interest rates and easing geo-political risk premium.
The Street awaits U.S. President Donald Trump's decision if the US will enter the Iran-Israel war in two weeks.
"On charts prices may find some resistance around Rs 99,300-99,650, while on the downside support is seen at Rs 98,000-97,650," Mer said.
The price of physical gold in Delhi-NCR market is still above the Rs 1 lakh mark. This includes a 3% GST levy.
Renisha Chainani, Head - Research at Augmont also sees profit-booking in gold after record highs of Rs 1,01,078 per 10 gram on the MCX.
"Precious metals have reversed as support from growing geopolitical tensions in the Middle East is offset by a stronger dollar overall and the possibility of fewer interest rate reductions from the US," Chainani said.
Technical triggers
"Gold prices are consolidating around record-high levels in the range of Rs 99,000($3,360) and Rs 101,000 ($3,475).
Despite the Fed's hawkish tone, ongoing geopolitical tensions between Iran and Israel continue to offer downside protection for gold, Jateen Trivedi, Vice President Research Analyst - Commodity and Currency, LKP Securities opines. "The broader trend remains range-bound to positive, with a key support level seen at $3,290, and strong resistance near $3,500 on Comex. Unless there is a clear resolution on geopolitical fronts or a shift in Fed commentary, gold is likely to stay buoyant within this broad band," he added.
Silver price today
The July silver futures plunged by Rs 1,395 or 1.3% and were trading around Rs 1,05,998. On the COMEX, silver contracts fell by $1.128 or 3.06% per troy ounce to trade around $35.78.
Silver prices have retraced from its high, next support is Rs 105,300($35.50), said Chainani, adding that prices should sustain this support for the bull trend to continue. If this support is broken, the next downside level is Rs 104,000 ($34.50), he added.
Also Read:
Commodity Radar: MCX crude oil futures cross 200-DMA amid Israel-Iran tension. Can it breach this crucial resistance zone?
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
19 minutes ago
- Deccan Herald
Bengaluru: Now, Ferrari & Mercedes owners pay Rs 1 cr in fines, unpaid road tax
Bengaluru: Transport authorities on Friday penalised the owners of two more luxury cars that were registered outside Karnataka but regularly used within the state without paying applicable road tax. .A Jayanagar RTO team collected nearly Rs 1 crore in fines and unpaid road tax from the car owners. .The cars include a Ferrari 812 Superfast registered in Jharkhand (JH 10 BS0099) and a Mercedes-Benz G-Class AMG G 63 registered in Puducherry (PY 05 K 6309). .The Ferrari owner had to fork out Rs 61,94,494 and the Merc owner Rs 37,03,644. .The two cars were being regularly used in Karnataka for more than two years, a Transport Department official told said. .Bengaluru bizman fined Rs 38 lakh for unpaid road tax on luxury cars bought from Amitabh Bachchan, Aamir on Wednesday, transport authorities fined scrap dealer-turned-real-estate businessman Yousuf Shariff, popularly known as KGF Babu, nearly Rs 40 lakh for using two Maharashtra-regitered Rolls-Royce cars in Bengaluru without paying the required road tax. .One of the cars (MH 02-BB-0002) was bought from Bollywood legend Amitabh Bachchan, and the other (MH11-AX-0001) from actor Aamir Khan. .As per transport department rules, any vehicle registered outside Karnataka and used continuously in the state for over a year must pay the applicable road tax.
United News of India
32 minutes ago
- United News of India
Laurus Labs Q1FY26 net surges 1154 pc to Rs 163 cr
Hyderabad, July 25 (UNI) Laurus Labs, a leading research and development driven pharmaceutical and biotech company in India, on Friday posted a net profit of Rs 163 crore in Q1FY26, up 1154 per cent Y-o-Y as compared to Rs 13 crore in the same period last year. Revenue during the period increased by 31 percent to Rs 1,570 crore as against Rs 1195 crore during the corresponding period in the previous year, the Hyderabad-based Pharma company said in a release here. Commenced construction of new Gene/ADC facility in Hyderabad (Telangana) while Fermentation manufacturing site (Vizag) build up on track as planned and expect the facility to commence operations by 2026 end, the release said. Dr. Satyanarayana Chava, Founder & Chief Executive Officer commented; 'We made healthy progress to start the year with increasing contributions from CDMO business and continued advancement of pipeline projects, supported by Generic FDF. We are moving ahead with a strong focus on commercial execution realizing the full potential from promising pipeline opportunities, business development and rapidly enhancing scale and technology capabilities'. We also commenced construction of various facilities across CDMO, Generics and FDF. Once complete, these facilities will fortify our ongoing commitment of being a high-quality development and manufacturing partner at scale including advanced therapies. We remain confident in our strategic direction and commitment as the source of sustainable value creation now and well into the future, he added. V V Ravi Kumar, Executive Director & Chief Financial Officer said 'We are pleased to see sustained growth momentum fueled by increasing uptake in CDMO deliveries and healthy business fundamentals. We have achieved revenues of Rs 1,570 crore, representing 31 per cent growth and EBITDA of Rs 389 crore, representing 127 percent growth. The EBITDA margins improved substantially to 24.8 percent, supported by continuing operating leverage. Gross margins stood strong at 59.4 per cent due to favorable CDMO mix and ongoing process improvement initiatives'. We will continue to invest fully behind high value business opportunities to drive near and long- term growth and returns for our shareholders, he added. UNI KNR GNK
Time of India
an hour ago
- Time of India
Last hurdle cleared for UT's first-ever flyover, tendering in a week
1 2 Chandigarh: After years of delays, legal hurdles, and bureaucratic back-and-forth, Chandigarh's first-ever flyover is finally ready to take off. The ministry of road transport and highways (MoRTH) has officially approved a revised financial allocation of Rs 240 crore for the ambitious flyover-rotary-underpass project at the bustling Industrial Area rotary on NH-5. In a high-level meeting chaired by the Secretary, Road Transport and Highways, and attended by representatives from NITI Aayog, the Department of Legal Affairs, and the Department of Economic Affairs, the project received long-awaited administrative clearance. "After the issuance of the minutes of the meeting of the committee, the process for tendering will be initiated, which is expected to be by next week. The tendering process will take another two to three months for completion. Concurrently, a detailed traffic diversion plan will be prepared for the project. After work allotment, the construction will start," said a senior UT official. The project was first conceptualised in 2018. The ministry approved the project with an allocation of Rs 183 crore in February 2019. After the tendering process, the winning bid for the project completion was Rs 137 crore. UT issued a letter of award (LOA) on November 19, 2019. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Online USA MBA Courses Might Surprise You MBA Courses in USA | Search Ads Undo However, acting on a public interest litigation (PIL) regarding the cutting of trees for the project, the Punjab & Haryana High Court granted a stay on the project on November 20, 2019. On April 30, 2024, the HC dismissed the PIL, paving the way for the construction of the flyover. A meeting was called on June 12, 2024, in Transport Bhawan, New Delhi, to decide the further course of action. In the meeting, it was decided, keeping in view the substantial gap since the issuance of the LOA, that the UT engineering department should submit the revised cost estimate at the earliest, along with revised phasing of expenditure. In May this year, MoRTH decided that for the Industrial Area flyover, a fresh tender will be called. "Since there has been a significant time gap since the award of work, it would be prudent to re-invite the bid and explore the current market response. As regards the cost towards shifting of public health utilities now included, MoRTH asked the Chandigarh Administration to deposit it with the ministry." A UT official said, "Rs 240 crore is to be funded by the ministry, while around Rs 40 crore is to be borne by the UT (for relocating underground utilities). " The Industrial Area rotary is one of the busiest junctions in the city. The 1.6 km long flyover was planned to decongest the rotary. The flyover is planned to start near the Hallomajra Chowk and end near the GMCH-32 rotary. The project has faced opposition from heritage conservationists, environmentalists, and even the UT urban planning department. MoRTH in the process of hiring consultant for additional flyover DPR For the decongestion of the stretch from Poultry Chowk to the Zirakpur border, an additional elevated road is under works. This will be in addition to the Industrial Area flyover. In its second attempt at hiring a consultant to formulate a detailed project report (DPR), the MoRTH has received a single bid. It is considering whether to award the DPR formulation work to the single bidder or invite fresh bids. MoRTH, in May this year, directed its regional office (RO) in Chandigarh to prepare a detailed project report (DPR) to decongest the stretch of road at Poultry Chowk, Hallomajra T-point, and the Old Airport Chowk.
