Gold prices dipped by a tad in India and are hovering around ₹1,01,360 per 10 grams in Ahmedabad on Friday amid the dollar gaining strength and fading expectations of a rate cut by the U.S. Federal Reserve in September. On the Multi-Commodity Exchange (MCX), gold futures settled at ₹98,704 per 10 grams, while silver was at ₹1,09,972 per kg. 

Globally, gold was trading at $3,395 an ounce at 11:30 IST. "A stronger U.S. currency, following President Donald Trump's imposition of greater tariffs on several nations, caused gold prices to decline to around $3,300,” said Renisha Chainani, head–research at Augmont.

Silver, which tumbled 2.7% to a four-week low, too, was weighed down by a stronger dollar, which hit a two-month high above 100. "Trump reinstated a global base tariff of 10% and levied punitive tariffs of up to 41% on countries that do not have trade agreements with the U.S. Additionally, he declared a 40% tax on products that are believed to be diverted through other nations to circumvent current taxes," said Chainani.

Due to pressure from a stronger US dollar and less geopolitical uncertainty, silver prices fell to $36.50, the lowest level since July 9, she added. “Silver remains more than 1% higher in July, despite the recent decline. On July 22, it briefly reached $39, the highest level since August 2011, due to a tightening physical supply.”

According to Aksha Kamboj, vice president–IBJA and executive chairperson, Aspect Global Ventures, "Gold prices are showing signs of fatigue at higher levels, despite an increase in tariff-related rhetoric from Trump”. He added that the weakness was driven by a stronger US dollar and fading expectations of a Federal Reserve rate cut in September. Market attention is now focused on the U.S. jobs report due later Friday, which could influence the Fed’s future rate decisions and provide direction for bullion prices. "However, any further escalation in trade tensions may prompt investors to return to safe-haven assets like gold," said Kamboj.

Supporting the dollar, initial jobless claims for the week ending July 26 decreased to 218K, below the forecast of 224K, indicating a resilient labour market. Meanwhile, June’s core Personal Consumption Expenditures (PCE) rose to 2.8% year-on-year from 2.7%. Headline PCE increased to 2.6%, exceeding expectations, according to the Kotak Securities report.

The report also noted that silver faced additional pressure from a 21% decline in copper prices following Trump’s decision to exclude refined copper from tariffs and weak Chinese manufacturing data, with July’s PMI falling to 49.3. The US confirmed a 10% baseline tariff and increased Canada’s tariff to 35%, effective August 1.

"Gold…is under pressure by a strong dollar as markets now await July’s U.S. NFP, ISM Manufacturing PMI, and UoM Sentiment Index. Geopolitical risks may still offer safe-haven support for bullions," the report read.