Gold futures settled lower by 0.32% at Rs 142,915, as easing geopolitical concerns in the Middle East and persistent inflation worries influenced market sentiment. Investors observed the unfolding situation following U.S. President Donald Trump’s announcement that Iran and various Middle Eastern nations had sought extra time to conclude an agreement aimed at reopening the Strait of Hormuz and alleviating regional tensions. Concurrently, market participants exhibited a degree of caution in anticipation of a succession of pivotal U.S. labour market reports, encompassing JOLTS job openings, ADP employment data, weekly jobless claims, and the nonfarm payrolls report.
These reports are anticipated to offer additional insights into the Federal Reserve’s monetary policy trajectory. In a continuation of the cautious sentiment, three Federal Reserve officials emphasised their inclination towards an immediate interest rate increase, pointing to worries that inflation may persist above the central bank’s 2% target in the absence of stricter monetary policy. Fundamental data presented a mixed picture for the bullion market. CFTC data indicated that speculative net long positions in COMEX gold decreased by 3,258 contracts, bringing the total to 120,328 contracts, which reflects a reduction in bullish positioning.
According to the World Gold Council, global gold demand held steady at 1,268.9 metric tonnes in the second quarter of 2026, with robust central bank purchases counterbalancing ETF outflows. During the quarter, central banks acquired 289 tonnes of gold, with Poland and China at the forefront of these purchases. Meanwhile, China’s net gold imports through Hong Kong experienced a decline of over 5% in June, while India’s gold imports for the June quarter fell by 23% year-on-year. This decrease can be attributed to elevated import duties that have suppressed demand, despite ongoing investment interest.
Gold is currently experiencing new selling pressure, as evidenced by a 4.28% increase in open interest to 9,748 contracts, coupled with declining prices, which suggests the establishment of new short positions. Immediate support is positioned at Rs 142,345, with subsequent support at Rs 141,770, while resistance is identified at Rs 143,710. A sustained move above this level could extend gains towards Rs 144,500.