Gold and silver prices saw an increase on Monday due to value buying following a slight decline in the US dollar, although high crude oil prices kept investors wary amidst expectations of another US Federal Reserve rate hike.
On the Multi Commodity Exchange (MCX), gold futures for August delivery surged by 0.52% or Rs 743 to reach an intraday high of Rs 1,41,649 per 10 grams at 11:45 am. Currently, the yellow metal is trading at Rs 1,41,254, up by Rs 348 or 0.25%, having touched an intraday low of Rs 1,41,081 earlier.
Meanwhile, silver futures for September delivery rose by 1.85% or Rs 4,005 to hit an intraday high of Rs 2,20,408 per kg. The white metal is presently trading at Rs 2,18,225, up by Rs 1,822 or 0.84%, after reaching an intraday low of Rs 2,17,804 during the session.
In the global market, precious metals showed mixed trends. COMEX gold declined by 0.24% to $4,009.30 per ounce, while COMEX silver increased by 0.88% to $56.82 per ounce.
Market experts suggest a cautiously positive near-term outlook for both gold and silver despite ongoing global market uncertainties. They anticipate MCX gold to find support above Rs 1.41 lakh, with a potential strengthening of recovery if it surpasses Rs 1.42 lakh. Similarly, silver’s positive momentum is expected to continue if it holds above the Rs 2.20 lakh mark.
Analysts note that the weaker US dollar has provided backing to bullion prices by making gold more affordable for holders of other currencies. However, the surge in crude oil prices above $90 per barrel, driven by escalating tensions in the Middle East, has heightened inflation concerns and the anticipation of another US Federal Reserve interest rate hike.
