Gold price under pressure today, what's causing the dip and what should investors do?

Gold prices fell on Thursday, July 17, as the US dollar strengthened, impacting the commodity's appeal. On MCX, gold price slipped by Rs 610 per 10 gm to Rs 97,178 against the previous close of Rs 97,788. Spot gold slipped 0.2% to reach $3,340.79 per ounce, according to reports available at 0400 GMT. US gold futures also saw a decrease, slipping by 0.4% to $3,347.10 per ounce. In India, the 24 karat gold price stood at Rs 99,330 for 10 grams.

These volatility came in light of recent economic developments and ongoing discussions surrounding Federal Reserve policies. "Gold dropped below $3,340 per ounce as the dollar regained ground, following eased uncertainty over the Fed Chair’s position," explained Jigar Trivedi, a Senior Commodity Analyst at Reliance Securities.

Earlier, there were speculations about the potential removal of Federal Reserve Chair Jerome Powell, but President Trump clarified he was "highly unlikely" to do so, though he criticised the Fed's interest rate policies.

Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures said, "Gold prices remain on edge despite a positive yet volatile performance. Aside from ongoing trade and tariff discussions, there are few clear drivers to push bullion decisively in either direction. As a result, gold is expected to continue consolidating unless a significant market-moving event unfolds."

Meanwhile, Rahul Kalantri from Mehta Equities said, "In INR, gold has support at Rs 97,320- Rs 96,980 while resistance at Rs 97,980- Rs 98,280. Silver has support at Rs 1,10,280-1,09,450 while resistance at Rs 1,11,950-1,13,000."

Additionally, the US Producer Price Index (PPI) remained flat in June, which has implications on the gold market. "June’s flat US PPI reading suggests tariffs may be hurting less than expected," remarked Trivedi. The firmness of the dollar index, which edged up 0.1% against major currencies, makes dollar-priced gold more expensive for international buyers.

The current trading range sees support for gold between $3,315 and $3,290, with resistance levels at $3,360 to $3,380 per ounce. In India, the support and resistance levels for gold are ₹97,320–₹96,980 and ₹97,980–₹98,280 per 10 grams, respectively.