Overview
- On Tuesday, July 21, international spot gold rebounded about 1–2% and traded above $4,000 per ounce after reports that mediators proposed a 10‑day ceasefire between the United States and Iran.
- Pakistan’s All Pakistan Gems and Jewellers Association reported a new local record of Rs429,236 per tola on July 21 after the international rise was passed through under the country’s pricing formula that adds a fixed premium to global rates.
- India’s MCX gold futures climbed roughly 1% to about Rs142,300 per 10 grams while silver futures in Mumbai rose to roughly Rs221,000 per kilogram as domestic contracts tracked the international recovery.
- Market expectations for higher U.S. interest rates continued to cap gold’s gains, with CME FedWatch probabilities for further hikes cited across outlets and rising Treasury yields and a firmer dollar reducing demand for non‑yielding bullion.
- Traders said oil, U.S. yields and the dollar are now the key short‑term drivers of bullion volatility, while longer‑term support comes from steady central bank buying and safe‑haven demand that has pushed gold through extreme highs earlier this year.