Gold and Silver rate today (July 12, 2024): Domestic yellow metal futures on Friday traded mildly lower, while the white metal futures also traded with a cut tracking international rates. This is as a cooler-than-expected inflation print in the US bolstered hopes of a likely earlier rate cut by the US Federal Reserve. 

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At the last count, MCX gold futures (Aug 5) were down 0.11 per cent or Rs 82 at 73,229 per 10 gm. Meanwhile, MCX Silver futures (Sept 5) were down by over 0.4 per cent or Rs 400 at Rs 93,790 per kg. 

Internationally, the precious yellow metal is on the course of its third-straight weekly gain. Meanwhile, Comex Gold traded down by 0.32 per cent at $2,414 per ounce. 

Gold prices surged nearly 2 per cent on Thursday, surpassing $2,400 per ounce, after U.S. consumer prices unexpectedly fell, boosting expectations for Federal Reserve interest rate cuts. Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One held that this inflation data showed the smallest annual increase in a year, signaling a return to disinflation and strengthening views of impending rate cuts.
Consequently, the dollar dropped to a one-month low, enhancing gold's appeal for foreign investors, while the U.S. 10-year Treasury yield hit a four-month low.

Fed Chair Jerome Powell's comments to Senate and House committees further indicated that a rate cut decision is imminent.

Outlook for gold 

Gold prices are poised to remain strong, driven by lower U.S. consumer prices and increasing expectations of Federal Reserve interest rate cuts, added Mallya. 

Rahul Kalantri, VP Commodities, Mehta Equities anticipates that gold and silver prices will remain volatile in today’s session ahead of the U.S. Producer Price Index (PPI) data release. However, the overall trend appears firm. Gold has support at $2,388-$2,370 and resistance at $2,427-$2,445. Silver has support at $31.00-$30.80 and resistance at $31.30-$31.52. In INR terms, gold has support at Rs 73,050-₹72,810 and resistance at Rs 73,520- Rs 73,690. Silver has support at Rs 93,440- Rs 92,880 and resistance at Rs 94,840-Rs 95,520.

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