Spot gold stayed firm at $3,389.98 per ounce as of 5:03 AM GMT. Earlier, it touched its strongest level since June 17.
US gold futures held steady at $3,402.90 an ounce.
In India, gold prices continued to reflect the global strength. On Tuesday (July 22), 24 karat gold traded at ₹10,129 per gram, while 22 karat gold stood at ₹9,285 per gram. For 18 karat gold, the price was around ₹7,597 per gram, according to Goodreturns.
Kelvin Wong, Senior Market Analyst at OANDA, said, “Gold’s upside is supported by positive technicals and the broad dollar weakness.”
The US dollar index hovered near a one-week low, making gold cheaper for holders of other currencies. Benchmark US 10-year Treasury yields also dipped to a one-week low.
Geopolitical tensions added fuel to the safe-haven buying. The European Union may roll out countermeasures against the US as trade talks stall. US President Donald Trump has threatened a 30% duty on European imports if no deal is reached by August 1.
“There could be uncertainty if the US and its trading partners fail to agree, which may spark hedging in gold,” Wong added.
Rahul Kalantri, VP Commodities at Mehta Equities, said bullion is seeing robust demand.
“Safe-haven buying is back on tariff concerns and a soft dollar. In India, the rupee’s weakness due to NATO’s warning of secondary sanctions on Russian oil imports is also lending support,” he noted.
Technical charts show gold has support at $3,370-$3,350 an ounce, with resistance at $3,422-$3,440 an ounce. In rupee terms, gold has support at ₹98,780–₹98,450 per 10 grams and resistance at ₹99,550–₹99,780 per 10 grams.
Motilal Oswal Financial Services, however, expects gold to consolidate for now. Manav Modi, Analyst at Motilal Oswal, said, “Gold needs fresh triggers to break its all-time highs. We expect a period of price consolidation until any decisive new catalyst emerges.”
-With inputs from Reuters