New Delhi, August 13: Amid global uncertainty, gold and silver prices saw a strong start in the domestic futures market on Thursday, only to experience profit-taking later in the day. Internationally, gold remains above $4,450 per ounce, providing support for these precious metals. Investor demand and continuous purchases by central banks are also bolstering gold prices.
On the Multi Commodity Exchange (MCX), gold for October delivery opened at ₹155,071 per 10 grams, up by ₹189. However, this initial surge did not last long, and prices fell during trading hours.
As of the time of writing, gold futures were trading at ₹153,800 per 10 grams, down by ₹1,082 or 0.70%. During the session, gold reached a high of ₹155,145 and a low of ₹153,600. Nevertheless, these current prices are still significantly below this year’s record high of ₹180,779 per 10 grams.
Silver prices also showed strength initially. September delivery silver futures opened at ₹238,000 per kilogram, up by ₹165, but selling pressure soon took over.
During trading, silver dropped by ₹2,535 or 1.07%, settling at ₹235,300 per kilogram. The day saw silver touch a high of ₹238,000 and a low of ₹235,236. The annual record high for silver stands at ₹420,048 per kilogram.
In the global market, both gold and silver experienced limited declines. On COMEX, gold opened at $4,468.80 per ounce and later traded down by $2.40 at $4,465.10 per ounce.
Silver on COMEX opened at $65.45 per ounce and later saw a slight decline of $0.11, reaching $65.59 per ounce. Despite this, both metals remain close to recent highs.
Following the CPI report released on Wednesday, investors are now awaiting the US Producer Price Index (PPI) data set to be released on Thursday.
Market direction is currently dependent on expectations surrounding the upcoming interest rate policy of the US Federal Reserve. Recent data indicates that the likelihood of a rate hike in September has decreased to about 40%, down from approximately 54% a week earlier.
Experts believe that a reduced chance of rate hikes supports gold, as lower interest rates make non-yielding investments more attractive.
In July, the consumer inflation rate (CPI) in the US was recorded at 3.4%, slightly down from 3.5% in June, aligning with market expectations. The second consecutive month of easing inflation has led investors to hope that the Fed may avoid an aggressive stance on interest rates.
Investors are now focused on the upcoming PPI data, which could indicate how much pressure on prices is easing and what steps the Fed may take next.
Another significant support for gold prices comes from ongoing geopolitical uncertainties in the Middle East. Attacks on maritime vessels and regional tensions have kept crude oil prices firm. Additionally, the situation regarding disputes related to Iran remains unclear.
In these circumstances, investors are turning to safe-haven assets, maintaining demand for precious metals like gold and silver. Market experts believe that as long as global economic and geopolitical uncertainties persist, gold will continue to receive strong support.
Leave a Comment