Gold rates in India dropped for the second consecutive day, with 24 carat gold price in 100 grams crashing by Rs 6000 from July 15-16. MCX gold also continued to trade in a narrow range between Rs 97,500 and Rs 98,500 per 10 grams level this week. The latest drop in gold comes after US CPI inflation hit highest level in five months, as it lowered the expectations of early rate cuts from the Fed. Key U.S. data, including PPI and jobless claims, will guide further movement on July 17.
On July 16th, 100 grams of gold prices dropped by Rs 4,900 and Rs 4,500 in 24 carat and 22 carat, respectively. The prices were lower by Rs 490 and Rs 450 in 10 grams.
Also, gold prices were down by Rs 1,100 and Rs 1,000 in 24 carat and 22 carat on July 15. That being said, from July 15-16, 24 carat and 22 carat gold prices plunged by Rs 6,000 and Rs 5,500 respectively in 100 grams.
Currently, 100 grams of gold is available at Rs 9,92,700 in 24 carat, at Rs 9,09,900 in 22 carat, and at Rs 7,44,500 in 18 carat. The price is Rs 9,927 per gram for 24 karat gold, at Rs 9,099 per gram for 22 karat gold and at Rs 7,445 per gram for 18 karat gold (also called 999 gold).
10 grams gold prices is at Rs 99,270 in 24 carat, at Rs 90,990 in 22 carat, and at Rs 74,450 in 18 carat.
MCX Gold, Silver Prices:
MCX gold price closed at Rs 97,800 per 10 grams, up by Rs 12, after hitting an intraday high of Rs 98,282 on July 16. Also, MCX silver price surged by Rs 16 to close at Rs 1,11,651 per 1kg, after touching an intraday high of Rs 1,12,295 per 1kg.
Gold Prices Outlook On July 17:
"The uptick in inflation has lowered immediate rate cut expectations from the Fed, aiding the dollar. However, gold regained ground today with a 0.25% gain at Rs 97,450, as risk sentiment remains cautious. In the week ahead, key U.S. data including PPI and jobless claims will guide further movement. Gold is expected to remain volatile within a range of Rs 96,500-Rs98,500," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Furthermore, Kaynat Chainwala, AVP-Commodity Research, Kotak Securities highlighted that the dollar climbed to 98.7 as US CPI rose 2.7% year-on-year in June, the highest since February and well above the Fed's 2% target, reducing expectations of imminent rate cuts, with markets now pricing in just 43 basis points of easing this year, despite Trump's renewed calls for rate reductions. Precious metals weakened further amid improved trade sentiment after US Treasury Secretary Bessent stated that US-China talks were in a "very good place," and President Trump announced a trade deal with Indonesia.
"Risk appetite remains subdued as new tariffs targeting 25 countries, including Canada, Mexico, and the EU, are set to take effect on August 1," said Chainwala.
Gold prices rose toward $3,340 per ounce on Wednesday, following a two-day decline, as investors assessed a pick-up in US inflation and ongoing trade developments. June CPI rose at the fastest pace in five months, suggesting tariffs may be starting to have an impact on inflationary pressures. President Trump called for rate cuts, but Fed officials signaled caution, citing inflation risks. Markets now await the PPI report for further insight, as per Trading Economics data.
Meanwhile, the data added that trade concerns lingered after Trump announced a 19% tariff on Indonesian goods and said additional tariff notices would be sent to smaller countries. He had earlier threatened 30% tariffs on imports from Mexico and the EU starting August 1 but later signaled openness to talks. Separately, the World Gold Council reported net central bank gold purchases of 20 tonnes in May, led by Kazakhstan, Turkey, Poland, and Singapore. China also extended its buying streak in June, lifting total purchases since November to 34.2 tonnes, as per Trading Economics data.
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