Gold and Silver Prices Today: Gold tops Rs 98,000 on MCX, silver near Rs 1.13 lakh amid trade tensions

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Gold and silver prices witnessed an uptick on Tuesday, supported by heightened global trade tensions and investor caution ahead of key US inflation data. On the Multi Commodity Exchange (MCX), gold futures climbed by Rs 256 or 0.26% to settle at Rs 98,031 per 10 grams, while silver futures rose by Rs 468 or 0.41% to close at Rs 1,12,468 per kilogram.

In global markets, spot gold was trading 0.5% higher at $3,360.35 per ounce as of 0436 GMT, while US gold futures gained 0.3% to $3,369.50. The precious metal found support from rising concerns over US trade tariffs and expectations around the Federal Reserve’s future interest rate path.

“Gold has shown in the past that it is an asset of choice when tariff tensions are ratcheted up. The precious metal's move towards $3,350 is evidence of this pattern playing out again,” said Tim Waterer, Chief Market Analyst at KCM Trade.

However, he added that higher US treasury yields and dollar strength could cap further gains, unless there’s a pullback in either or an escalation in geopolitical tensions.

All eyes on US inflation

The market focus remains firmly on US consumer price data for June, set to be released at 1230 GMT. A Reuters poll of economists expects headline inflation to rise to 2.7% year-on-year, up from 2.4%, while core inflation is projected to increase to 3.0% from 2.8%.

Gold, often considered a hedge against inflation and economic uncertainty, tends to benefit from a lower interest rate environment. Adding to the uncertainty, US President Donald Trump on Monday renewed his criticism of Fed Chair Jerome Powell, suggesting that interest rates should be at 1% or lower. Markets are now factoring in 50 basis points of rate cuts by year-end, with the first expected in September.

Silver nears 14-year high

Silver prices held steady at $38.15 per ounce, after touching their highest level since September 2011 on Monday. Analysts pointed to strong industrial demand and supply concerns as key drivers.

“Silver has been riding on gold’s momentum over the past 18 months, and investors are now seeing value in the white metal,” added Waterer.

Among other precious metals, platinum gained 0.8% to $1,374, and palladium edged up 0.2% to $1,196.10.

Domestic market volatility

Back home, Manoj Jain, Director at India Nivesh, said that both gold and silver showed signs of profit booking from their recent highs ahead of the US inflation release and a rebound in the dollar index.

On Monday, gold August futures had settled at $3,358.10 per ounce, down 0.15%, and silver September futures ended at $38.742 per ounce, down 0.55%. On the MCX, gold closed at Rs 97,775 per 10 grams and silver at Rs 1,12,936 per kg, both marginally lower.

“Traders booked profits in long positions and prices slipped from intraday highs amid dollar strength. Gold is still holding key support levels amid global uncertainty,” Jain noted.

He expects gold and silver to remain volatile this week, with key support for gold at $3,280 per ounce and silver at $36.40, while resistance levels stand at $3,389 and $39.50 respectively. On the MCX, gold has support at Rs 97,000 and resistance near Rs 98,360, while silver may find support at Rs 1,10,800 and resistance around Rs 1,15,200.

Dollar index and rupee outlook

Meanwhile, the dollar index gained 0.27% to close at 97.797 on Monday, amid concerns over US tariffs on Canada, Mexico, and the European Union. The USD-INR July 29 futures contract closed at 86.0200, up 0.21%, reflecting weakness in the rupee.

“Global equity markets are turning cautious after Trump's 30% tariff threat. The euro and pound dropped, boosting the dollar index further,” Jain added. He expects the dollar index to remain volatile in the 95.55–99.80 range, and the rupee to trade between 85.05–87.00 this week.

As global trade tensions and inflation uncertainty weigh heavily on investor sentiment, bullion and currency markets are bracing for a choppy week ahead.