In the international market, gold futures were down 1.04% at $4,122.10 an ounce in New York, while silver fell 2.11% to $60.73 an ounce.
Despite the decline, DSP Netra’s July market outlook does not recommend increasing exposure to precious metals just yet. The report maintained a neutral stance on both gold and silver, saying the recent correction has improved valuations but not enough to justify an overweight allocation.
According to DSP’s valuation framework, gold is trading around 10.7% below its theoretical fair value, while silver is about 21.8% below its theoretical value. However, the fund house said it would prefer to see a larger discount, stronger demand from ETFs, central banks or jewellery buyers, and a weaker US dollar before turning more positive on the two metals.Ravi Singh, Chief Research Officer at Master Capital Services, said MCX gold remains in a consolidation phase despite Tuesday’s decline.
“The overall technical structure remains constructive, with prices holding above the crucial ₹1.40 lakh per 10 grams support zone. Immediate resistance is seen near the 21-day exponential moving average around ₹1.48 lakh. A decisive breakout above this level could push prices towards the ₹1.50 lakh-₹1.51 lakh zone,” Singh said.
He added that global bullion prices weakened as uncertainty over the US interest rate outlook and persistent inflation kept investors cautious. Fresh geopolitical concerns following reports of a vessel being struck in the Strait of Hormuz supported the US dollar, limiting gains in gold.
Markets are now awaiting the minutes of the US Federal Reserve’s June policy meeting for fresh clues on the future interest rate path, which could determine the next move in bullion prices.
