Why gold prices may slip for a second straight week

Gold prices edged lower on Friday (June 27) and is heading for a second straight weekly loss, as a firmer dollar and easing geopolitical tensions kept bullion under pressure. The focus now shifts to key US inflation data for clues on the Federal Reserve’s rate path.

Spot gold fell 0.4% to $3,313.23 per ounce by early trade. US gold futures also slipped 0.7% to $3,325.70. For the week, bullion is down 1.7%, as per Reuters.

In India, gold was priced

at ₹98,020 for 10 grams of 24 karat, ₹89,850 for 22 karat, and ₹73,520 for 18 karat, according to GoodReturns.

Analysts attributed the weakness in gold to a peace deal between Israel and Iran and investors booking profits after recent highs.

"Gold remained range-bound as dollar index weakness provided some support, while the Fed’s stance of no immediate rate cuts weighed on sentiment," said Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.

He added that domestic gains were capped by rupee appreciation and sees MCX Gold trading between ₹95,500 and ₹98,500 per 10 grams in the near term.

Rahul Kalantri, VP Commodities at Mehta Equities, said, “A weaker dollar and poor US GDP data supported gold earlier this week, but a recovery in global equities and easing Middle East tensions capped upside. Gold has support at $3,288–3,265 an ounce and resistance at $3,330–3,345 an ounce.”

In rupee terms, he noted support levels at ₹96,650–96,480 per 10 grams and resistance around ₹97,350–97,600 per 10 grams.

Kaynat Chainwala, AVP–Commodity Research at Kotak Securities, said Comex gold held firm above $3,340 per ounce this week as traders reacted to soft US housing data, falling Treasury yields, and policy uncertainty ahead of a potential Fed leadership change.

Still, markets remain cautious.

A key inflation gauge — the US core PCE Price Index — is due later Friday (June 27). Analysts expect it to show a 0.1% monthly increase and 2.6% annual rise.

Speculators are also rotating out of gold into other precious metals. “Some length is leaving gold and finding its way into platinum and palladium,” said Edward Meir, analyst at Marex.

Despite short-term volatility, analysts say the broader trend for gold remains positive amid persistent geopolitical and economic uncertainty.

-With Reuters inputs