Gold price rises on weak dollar, trade tensions

Gold prices experienced a modest rise on Thursday, July 10, driven by a softer dollar and easing bond yields, which bolstered market sentiment amid ongoing global trade tensions. Spot gold prices increased by 0.1% to $3,316.77 per ounce, as per the latest updates. In India, gold prices remained stable, with 24-karat gold priced at ₹98,170 for 10 grams. The dip in the dollar index by 0.2% made gold cheaper for buyers using other currencies.

The broader market context includes trade tensions heightened by US President Donald Trump's recent tariff hikes on copper imports and Brazilian goods.

Meanwhile, the US Federal Reserve's minutes indicated that few officials anticipated a rate cut this month due to persistent inflation, with the next policy decision expected on July 30.

Aksha Kamboj, Vice President - India Bullion & Jewellers Association (IBJA) & Executive Chairperson - Aspect Global Ventures said, "Gold traded at approximately Rs 96,085 per 10 grams for purity level 24K. This minor increase in rates indicates that gold demand is firm in India, while the global investors are also investing in gold as a safe asset because of prevailing uncertainties. Though Reserve Bank hasn't made any policy change recently, international gold prices above $3,330 per ounce helped stabilise Indian rates."

"As gold is trading in a tight range this week and global interest rates remain firm, we are anticipating prices to hold mostly firm, though with a marginal upward trend. Unless there is a significant shift in global news or economic numbers, prices can stay around Rs 97,000 per 10 gms. The investors need to watch global market cues and RBI updates in the days to come, as these will be instrumental in determining if the prices will remain firm or resume moving higher," added Kamboj.

Gold's price volatility persists, with support levels identified between $3,305 and $3,285 per ounce and resistance levels from $3,340 to $3,365 per ounce. In rupee terms, gold has support at ₹96,190–95,880 per 10 grams, with resistance at ₹96,950–97,380 per 10 grams, according to Rahul Kalantri, VP Commodities at Mehta Equities Ltd. "Gold shows high price swings," he noted, reflecting the ongoing market dynamics. US gold futures also saw an uptick, rising by 0.2% to $3,325.60 per ounce, further demonstrating the current trends in the gold market.