Gold prices on the Multi Commodity Exchange (MCX) fell back slightly into the red on Friday with tensions over Israel and Iran still causing some uncertainty for investors, as they continue to wait and see if the U.S. will take action. Gold traders are also considering the potential outcome of US interest rate cuts, which is further affecting gold prices.
Gold Closes Flat Even with Global Tensions
For the Metl Commodities Exchange (MCX) gold delivery for August delivery, gold fell ₹13 on Friday night to end at ₹99,096 per 10 grams after being as high as ₹99,198 and as low as ₹98,431 during the day. Gold was down more than 1% for the full week.
Meanwhile, silver prices were up slightly on the MCX. Silver futures rose ₹51 to end at ₹1,06,275 per kg for the exchange, and it traded as high as ₹1,06,695 and as low as ₹1,05,053 during the session.
Global Market Trends
In global markets, spot gold fell 0.2% to $3,365.51 an ounce. U.S. gold futures also dropped 0.7% to $3,385.50. Silver prices were down too, falling by 1.1% to $35.98 per ounce.
“Gold prices dropped as investors balanced expectations of US Federal Reserve rate cuts against escalating geopolitical tensions in the Middle East. A firm US dollar and elevated bond yields continue to pressure gold,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
What’s Going On in the U.S.?
U.S. President Donald Trump has put off a decision on whether the U.S. will join the Israel-Iran conflict. The White House advisor stated they would likely have a decision in two weeks.
The U.S. Federal Reserve’s timing of interest rate cuts is also unclear. Some U.S. Fed officials see the possible interest rate cuts coming as early as July. Other officials prefer a wait-and-see approach. Low or declining interest rates increase gold appeal since gold does not yield any income.
Jigar Trivedi, Senior Analyst at Reliance Securities, said that gold is currently stuck between global risks and strong U.S. economic signals. “While Fed Governor Christopher Waller opened the door to potential rate cuts as early as July, Fed Chair Jerome Powell maintained a cautious, data-driven stance. This divergence has created uncertainty, limiting gold’s upside even amid geopolitical stress,”
Gold Price Outlook
“While geopolitical tensions support gold in the short term, markets may remain reactive and headline-driven. Investors will look for any shift toward a more dovish or hawkish tone, especially in light of recent mixed comments from Fed officials,” said Jigar Trivedi.
“MCX Gold August futures find immediate support near ₹97,000 per 10 grams. With macro headwinds in play, we maintain a sell-on-rise strategy, especially around technical resistance zones,” Trivedi added
Key Things to Watch Next Week
- Any U.S. decision on the Israel-Iran conflict
- Fed Chair Jerome Powell’s speech in Congress
- New U.S. economic data
- Movement of the U.S. dollar
Conclusion :After the global tensions, gold is still not pushing higher price-wise. Gold price is facing pressure from a strong dollar and uncertainty on the direction of U.S. interest rates. Traders need to remain careful and stay tuned for significant news updates before making any big decisions.
