Gold prices continue to maintain levels above Rs 1 lakh, with October futures on MCX trading at Rs 1,00,253.00 per 10 grams, up 0.07%. This comes as US tariff uncertainty drives safe-haven demand for the precious metal. Meanwhile, silver September contracts saw a slight decline of 0.07%, trading at Rs 1,14,949.00 per kg.

Market Factors Influencing Gold Prices

Both gold and silver have gained following the release of US inflation data. The metals are further supported by a weaker dollar index, which stands at 97.74, and declining US 10-year bond yields. Market participants are anticipating potential Federal Reserve rate cuts, driven by stressed job markets and manageable inflation levels.

Price Projections and Volatility

Analysts expect continued volatility in the precious metals market due to ongoing tariff uncertainty and upcoming economic data releases. Gold is projected to trade between $3,340.00-3,540.00 per troy ounce, while silver may range from $36.80-40.00 per troy ounce.

Physical Gold Prices Across India

Physical gold prices show variations across Indian cities:

These price differences highlight the regional variations in gold rates across the country.

International Market Outlook

In the international market, gold spot prices are facing some pressure. However, the overall sentiment remains cautious as investors closely monitor developments in US trade policies and economic indicators.

The precious metals market continues to be influenced by a complex interplay of domestic and international factors. Investors and market watchers are advised to stay informed about these developments in the coming days.

Gold prices staged a recovery on Tuesday, bouncing back from a sharp decline in the previous session. Spot gold edged up 0.3% to $3,355.59 per ounce, while U.S. gold futures saw a modest 0.1% increase, reaching $3,406.80.

Market Dynamics

The precious metal's upward movement comes on the heels of a significant 1.6% drop on Monday, triggered by President Trump's announcement that tariffs would not be imposed on imported gold bars. This decision had initially put pressure on gold prices, but the market has since shown resilience.

Focus on US Economic Indicators

Investors and traders are now turning their attention to the upcoming U.S. consumer price index (CPI) data, a key indicator of inflation. Economists are projecting that the core CPI will rise by 0.3%, potentially pushing the annual rate to 3% - a figure that exceeds the Federal Reserve's 2% target.

Fed Rate Cut Expectations

The market is currently pricing in a 90% probability of a Federal Reserve rate cut in the coming month. This high expectation of a rate cut is likely contributing to the renewed interest in gold, as lower interest rates typically make non-yielding assets like gold more attractive to investors.

Geopolitical Developments

Adding to the market sentiment, President Trump has extended a pause on higher U.S. tariffs on Chinese imports for an additional 90 days. This move may help ease some trade tensions that have been influencing global markets.

In a separate development, Trump is scheduled to meet with Russian President Putin on August 15 in Alaska to discuss the ongoing Ukraine war. This high-level meeting could potentially impact global geopolitical dynamics and, by extension, safe-haven assets like gold.

Performance of Other Precious Metals

The upward trend was not limited to gold alone. Other precious metals also saw gains:

These movements suggest a broader positive sentiment in the precious metals market.

As markets await the crucial U.S. inflation data and monitor geopolitical developments, gold prices are likely to remain sensitive to these factors in the short term. Investors will be closely watching how these elements unfold and their potential impact on Federal Reserve policy decisions.