Gold Dips in India Despite Global Surge Amid Fed Inflation Warnings

On Thursday, gold prices in the Indian market edged lower even as global rates climbed, influenced by fresh signals from the U.S. Federal Reserve expressing inflationary and labor market concerns.

While international gold saw a notable uptick, domestic traders remained cautious in the lead-up to the weekend’s crucial U.S.-China trade negotiations. Global spot gold rose by 1.4%, reaching $3,409.76 per ounce, with U.S. gold futures gaining 0.7% to hit $3,416.70 as of 02:23 GMT. These gains followed the Fed’s move to keep interest rates steady while warning of inflation and job market pressures weighing on the U.S. economy.

Back home, MCX June gold contracts were trading at ₹96,981 per 10 grams at 10:01 am, showing a decline of ₹109 from the prior session. However, July silver futures surged by ₹479, reaching ₹96,212 per kilogram.

Federal Reserve Chair Jerome Powell acknowledged uncertainty about whether current economic momentum in the U.S. could be sustained, citing rising inflation and international geopolitical tensions as potential headwinds. Markets now expect around 77 basis points of rate cuts this year, likely beginning in September.

Gold typically benefits from lower interest rates, serving as a hedge during periods of economic and political instability. The metal also received a boost amid renewed tensions surrounding U.S.-China trade discussions set to take place in Switzerland. Former U.S. President Donald Trump noted that China had initiated the meeting but reaffirmed his stance on maintaining import tariffs.

In the wider precious metals market, silver advanced 1.1% to $32.82 per ounce, platinum gained 0.8% to $982.05, and palladium held steady at $971.95.

Analysts see technical support for gold at $3,370–$3,345 and resistance at $3,422–$3,440. In INR terms, key gold support lies between ₹96,650–95,980, while resistance ranges from ₹97,950 to ₹98,390. Silver’s support is pegged at ₹94,880–94,150, with resistance at ₹96,950–97,880.

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