Overview
- Spot gold fell about 0.8–1% on July 7 to roughly $4,120–$4,155 per ounce while Pakistan retail gold dropped Rs2,400 to Rs437,436 per tola.
- A firmer US dollar and higher US Treasury yields pushed investors away from gold because the metal pays no interest and looks less attractive than yield-bearing assets.
- Reports that Iranian forces struck commercial ships near the Strait of Hormuz added short-lived volatility by lifting oil and the dollar, but did not sustain a safe-haven rally in metals.
- Traders have largely parked positions ahead of the Federal Reserve’s June minutes due July 8, with markets unsettled by a 9-9 split in the Fed’s dot plot and Chair Kevin Warsh’s decision not to publish a personal projection.
- Regional markets reflected the international moves with India’s MCX futures and city rates softening to around Rs145,700 per 10g and technical support near $4,000 and MCX bands will guide the next directional moves for consumers and jewellers.