Gold prices eased on Wednesday, dragged down by improved risk sentiment after US President Donald Trump announced a trade agreement with Japan. However, weakness in the US. dollar and falling Treasury yields helped limit further losses in the precious metal.

On the Multi Commodity Exchange (MCX), gold futures declined by Rs 104 or 0.1 per cent, settling at Rs 1,00,225 per 10 grams. In contrast, silver futures gained Rs 262 or 0.23 per cent, closing at Rs 1,15,917 per kilogram.

On July 23, following a technical disruption that delayed market opening by over an hour. The exchange normally starts trading at 9 am. In a statement, MCX attributed the delay to a lag in “clearing technical processes and file sharing”, and said it regretted the inconvenience caused to market participants. Despite the glitch, MCX shares rebounded and traded 0.11 per cent higher at Rs 8,162.5 apiece on the National Stock Exchange (NSE) at 11:43 am. The stock had briefly turned negative earlier in the session but stabilised as normal trading resumed. The company’s market capitalisation stands at Rs 41,627.42 crore.

In global markets, spot gold dipped 0.2 per cent to $3,422.95 per ounce by 0459 GMT, after hitting its highest level since June 16 earlier in the day. US gold futures also fell by 0.2 per cent to $3,436.10 per ounce.

Trade Deal Eases Safe-Haven Demand

The pullback in gold came after President Trump confirmed a new trade deal with Japan that includes a 15 per cent tariff on Japanese imports. The development lifted investor confidence, leading to a rally in Asian markets, with Japanese shares leading the gains.

Further, US and Chinese officials are expected to meet in Stockholm next week to discuss extending the deadline for finalizing a trade deal. Analysts suggest that more such agreements could weigh on gold by reducing safe-haven demand.

“If further trade deals are signed ahead of August 1, this could further boost general risk appetite and reduce the demand for gold,” said Tim Waterer, Chief Market Analyst at CM Trade. “However, if the dollar continues to weaken, a return to $3,500 remains a viable near-term target.”

Dollar Weakness and Fed Policy in Focus

The US dollar index hovered near a two-week low, making gold more attractive for holders of other currencies. Meanwhile, US 10-year Treasury yields dropped to their lowest since July 9, providing further support to gold prices.

President Trump also reignited pressure on the Federal Reserve, calling Chair Jerome Powell a “numbskull” and suggesting he would be removed within eight months. Analysts believe such political tension could create short-term volatility in bullion markets.

“These are low-liquidity conditions and could easily see volatility fade if Trump eases his stance on Powell. Bears may return if gold dips below $3,500,” said Matt Simpson, Senior Analyst at City Index.

Broader Precious Metals Movement

• Spot silver fell 0.2 per cent to $39.20 per ounce
• Platinum edged down 0.1 per cent to $1,439.65 per ounce
• Palladium slipped 0.2 per cent to $1,272.50 per ounce

However, in futures trading, silver remained strong. On Tuesday, gold August futures had settled at $3,443.70 per ounce, up 1.10 per cent, while silver September futures rose 0.56 per cent to $39.555 per ounce.

In India, gold August contracts on MCX closed at Rs 1,00,329 per 10 grams, up 1.01 per cent, and silver September contracts at Rs 1,15,655 per kg, up 0.53 per cent.

Expert Outlook: Volatility to Continue

According to Manoj Jain, Director at India Nivesh, “Gold and silver extended gains amid the looming US tariff deadline and dollar index weakness. Trade uncertainty and a weaker rupee are also supporting domestic prices.”

He added that gold may continue to find support at $3,280 per ounce, while resistance remains near $3,500. Silver is expected to hold above $36.40. On MCX, gold has support at Rs 99,720–99,200 and resistance at Rs 1,00,700–1,01,000. Silver has support at Rs 1,14,850–1,14,000 and resistance at Rs 1,16,650–1,18,000.

Jain recommends buying silver in the range of Rs 1,15,200–1,14,400 with a stop loss at Rs 1,13,300 for targets of Rs 1,16,650–1,18,000.

Rupee and Dollar Index Under Pressure

The dollar index dropped 0.63 per cent on Tuesday, closing at 97.09, amid speculation of upcoming Fed policy changes and trade-driven currency shifts. The USD-INR July 29 futures rose 0.13 per cent to 86.4475 on the NSE.

Geopolitical tensions also weighed on the rupee. NATO’s recent warning to India, China, and Brazil over importing Russian oil raised fears of secondary tariffs. This uncertainty, coupled with delays in the US-India trade deal, pushed the rupee to test 86.50 levels.

Currency analysts expect the rupee to remain volatile this week, with a possible trading range of 85.45 to 87.00 against the US dollar, driven by global trade dynamics and domestic market sentiment.

City-wise Gold Prices (per gram on July 23, 2025):

Gold Price in Mumbai:
In Mumbai, the price of 24-karat gold stood at Rs -10,233 per gram, while 22-karat gold was priced at Rs 9,380 per gram.

Gold Price in Delhi:
The national capital recorded 24K gold at Rs 10,248 per gram, with 22K gold available at Rs 9,395 per gram.

Gold Price in Chennai:
Gold rates in Chennai were slightly lower, with 24K gold at Rs 10,233 per gram and 22K gold at Rs 9,380 per gram.

Gold Price in Kolkata:
In Kolkata, 24-karat gold was priced at Rs 10,233 per gram, and 22-karat gold was selling at Rs 9,380 per gram.

Gold Price in Bengaluru:
Bengaluru saw 24K gold trading at Rs 10,233 per gram, while 22K gold was available at Rs 9,380 per gram.

Gold Price in Pune:
Pune saw 24K gold trading at Rs 10,233 per gram, while 22K gold was available at 9,285 per gram.