Indian Gold and Silver Futures Rebound Amid Middle East Tensions and US CPI Wait
Indian gold and silver futures rebounded from recent losses as Middle East geopolitical escalation countered the headwinds of a stronger dollar ahead of critical US inflation data.
Indian gold and silver futures rebounded on Tuesday, snapping a two-day losing streak. On the Multi Commodity Exchange, August gold futures rose Rs 691 to Rs 1,41,000 per 10 grams, while September silver futures climbed Rs 615 to Rs 2,18,333 per kg.
This domestic recovery contrasts with slight declines in international spot markets, where gold fell 0.2 percent to $3,993.83 an ounce. The mixed pricing action reflects a tug-of-war between safe-haven demand and macroeconomic headwinds. Geopolitical risks have intensified after the US military conducted a third consecutive night of strikes against Iran.
Compounding the tension, two tankers were attacked in the Strait of Hormuz following US President Donald Trump’s announcement of a reinstated blockade on Iranian shipping. This escalation previously drove oil prices up nearly 9 percent to their highest levels since mid-June. However, strengthening US Treasury yields and a firmer dollar have simultaneously capped gains in non-yielding precious metals.
Market participants are now bracing for the June US consumer price index data due later Tuesday. This inflation reading will provide critical signals regarding the Federal Reserve’s future policy trajectory and could dictate the next major directional move for bullion.
Technical Levels and Strategy
Manoj Kumar Jain of Prithvi Finmart noted that international gold currently finds support between $3,955 and $3,910 per troy ounce, with resistance at $4,040 to $4,085. Domestically, he expects MCX gold to hold support in the Rs 1,39,100 to Rs 1,37,700 range.
Jain advised traders to avoid initiating fresh long positions in gold and silver at current valuations. He suggested that long-term investors might instead use the ongoing price correction to accumulate these metals systematically.
In physical markets, standard 22-carat gold prices held steady across major Indian cities. Rates stood at Rs 1,04,912 per 8 grams in Delhi, Rs 1,04,792 in Mumbai and Hyderabad, and Rs 1,05,592 in Chennai.
