Gold Loses Shine as Ceasefire and Trade Optimism Push MCX Rates Toward ₹94,000

Image Source : Business Outreach

Gold prices are facing renewed downward pressure as geopolitical tensions ease and global trade sentiment improves. The Multi Commodity Exchange (MCX) gold rate for August futures dropped sharply on June 28, 2025, with analysts now projecting a potential slide toward ₹94,000 per 10 grams. The shift comes in the wake of a tentative ceasefire between Israel and Iran and positive signals from global trade negotiations, both of which have dented safe-haven demand for the yellow metal.

Here’s a detailed look at the market dynamics and what investors should watch next.

Key Market Movements and Price Trends

- MCX gold futures for August delivery closed at ₹95,524 per 10 grams, down ₹1,563 or 1.61 percent
- During the session, prices touched a low of ₹94,951, marking a 2.2 percent drop from the previous close of ₹97,087
- For the week, MCX gold prices declined by 3.61 percent, reflecting the second consecutive weekly loss
- Internationally, COMEX gold fell over 1.5 percent to trade below 3,270 dollars per ounce
- MCX silver futures for September also dropped by ₹1,468 to ₹1,06,429 per kg

Why Gold Is Losing Ground

The recent price correction is being driven by a combination of geopolitical and macroeconomic factors:

- The Israel-Iran ceasefire, brokered by the US, has reduced immediate war risks, curbing safe-haven flows into gold
- US Commerce Secretary’s remarks on nearing trade deals with China and others have boosted risk-on sentiment
- Investors are reallocating capital toward equities and other risk assets amid easing global uncertainty
- The US dollar index fell below 97.3, its lowest since February 2022, amid rising expectations of interest rate cuts

Analyst Outlook and Technical Levels

- Analysts expect MCX gold to remain under pressure with a bearish bias in the near term
- Key support levels for COMEX gold are seen at 3,230 to 3,200 dollars per ounce
- On MCX, gold prices could test ₹94,800 to ₹94,000 per 10 grams if momentum remains weak
- Upcoming US macro data, including Nonfarm Payrolls and ISM PMIs, will be critical in shaping short-term price direction

What Investors Should Watch

- Progress in US-China trade talks ahead of the July 9 tariff decision deadline
- Comments from central bankers at the ECB Forum, including US Fed Chair Jerome Powell
- Any reversal in the Israel-Iran ceasefire or escalation in other geopolitical hotspots
- Shifts in inflation expectations and central bank rate guidance

While gold has long been a hedge against uncertainty, the current environment of easing tensions and improving trade prospects is prompting a recalibration. For now, the yellow metal may continue to lose some of its luster—at least until the next global tremor.

Sources: MSN India, Livemint, Equity Right, Outlook Money, Reuters, COMEX Market Data June 2025