Gold prices in India began the week on a cautious note, tracking global market weakness as investors braced for possible new US tariff announcements ahead of the July 9 “Liberation Day” deadline. In early trade on Monday, July 7, the Multi Commodity Exchange (MCX) gold rate dropped by over 0.5%, mirroring global sentiment amid a complex mix of geopolitical tensions and strong economic signals from the United States.
MCX Gold and Silver Prices: Market Snapshot
At the time of writing, MCX gold was trading at ₹96,500 per 10 grams, down ₹490 or 0.51%. The yellow metal hovered close to its intraday low of ₹96,402.
Silver prices also edged lower, slipping by ₹129 or 0.12% to settle at ₹1,08,300 per kilogram. The day’s trading saw silver hit an intraday high of ₹1,08,395 and a low of ₹1,08,124.
What’s Driving the Gold Market Today?
According to Rahul Kalantri, VP of Commodities at Mehta Equities, gold faced renewed selling pressure as investors grew less anxious about immediate trade tensions.
“Gold prices fell back to about $3,310 per ounce, while silver held steady near $36.60, as traders weighed evolving trade tensions and possible policy shifts,” Kalantri noted.
US President Donald Trump recently reaffirmed his stance that higher tariffs would be imposed on countries lacking trade deals starting August 1. However, Treasury Secretary Bessent’s suggestion of a three-week negotiation window helped ease fears, dampening gold’s appeal as a safe-haven asset.
US Jobs Data and Federal Reserve Outlook
Further dragging on gold’s bullish momentum was strong US employment data, which diminished expectations of an interest rate cut by the Federal Reserve in July. With inflation concerns easing and market optimism growing around US trade deals, the appetite for gold — traditionally seen as a hedge against economic instability — has weakened.
Markets are now pricing in just two 25-basis-point rate cuts before the end of 2025, down from earlier projections of three or more.
Geopolitical Factors Add to Market Uncertainty
While macroeconomic data steered much of the market direction, ongoing geopolitical tensions also played a role. The first round of indirect ceasefire talks between Hamas and Israel in Qatar ended without progress, raising concerns but failing to spark significant safe-haven buying.
Spot Gold Performance
On the international front, spot gold struggled to maintain its footing above $3,310 per ounce, slipping to a one-week low. With limited immediate trade-related risk and strong US data, global bullion sentiment remained subdued.
Gold Prices in Indian Retail Market (July 7, 2025)
Gold prices across Indian cities showed a softening trend:
- 24 Carat Gold: ₹98,830 per 10 grams
- 22 Carat Gold: ₹90,600 per 10 grams
- 18 Carat Gold: ₹74,130 per 10 grams
For bulk purchases:
- 100 grams of 24 Carat Gold stood at ₹9,88,300, down significantly from the all-time high of ₹10,16,800.
- This means gold is currently ₹3,280 per 10 grams and ₹32,800 per 100 grams below its peak.
Support and Resistance Levels (Technical Outlook)
As per Rahul Kalantri’s technical analysis:
- Gold (INR):
- Support: ₹96,590–₹96,480
- Resistance: ₹97,310–₹97,580
- Silver (INR):
- Support: ₹1,07,480–₹1,06,550
- Resistance: ₹1,09,450–₹1,10,200
On the global scale:
- Gold (USD):
- Support: $3,295–$3,275
- Resistance: $3,345–$3,365
- Silver (USD):
- Support: $36.35–$36.00
- Resistance: $37.00–$37.30
What to Watch This Week
- July 9 Tariff Deadline: Global markets await the US trade policy update, which could swing gold either way.
- Fed Comments & Inflation Data: Any new statements from Fed officials or inflation readings will be closely monitored.
- Geopolitical Developments: Middle East peace talks, Russia-Ukraine conflict, and China-US relations may influence global gold flows.
Volatility Likely to Persist
While gold and silver are off their highs, the bullion market remains in a state of cautious waiting. The combination of shifting trade dynamics, resilient economic data from the US, and fluctuating geopolitical headlines suggest that volatility will continue to dominate gold prices through the week.
Investors should keep an eye on the July 9 deadline and the Federal Reserve’s next move, both of which will be critical in determining whether the current dip in gold is a short-term correction or the start of a deeper slide.
Disclaimer: The market commentary and price levels mentioned above are based on analysis from financial experts and do not constitute investment advice. Readers are advised to consult certified financial advisors before making any investment decisions.
