Gold and silver prices witnessed a decline on Tuesday, following a bearish trend in the international markets amidst uncertainty over potential interest rate cuts by the US Federal Reserve. In the futures trade on the Multi Commodity Exchange (MCX), gold for August delivery dropped by Rs 122 or 0.17 per cent to Rs 71,532 per 10 grams. The precious metal hit a low of Rs 71,432 per 10 grams during the day.
Alongside gold, silver prices also experienced a decrease in both spot and futures markets. Silver contracts for September delivery fell by Rs 81 to Rs 89,669 per kg on the MCX. In Mumbai’s spot markets, gold was trading at Rs 71,692 per 10 grams, while silver was quoted at Rs 88,015 per kg. In the national capital, gold traded at Rs 74,250 per 10 grams, and silver at Rs 90,000 per kg.
Market analysts attributed the fluctuations in precious metal prices to uncertainty surrounding US economic data, geopolitical tensions, and upcoming elections in the UK and the US. Safe haven demand has increased in recent weeks, cushioning prices amid the challenging political backdrop.
In the overseas markets, both gold and silver were trading lower at USD 2,329.60 per ounce and USD 29.54 per ounce, respectively. Market participants are closely monitoring US Federal Reserve Chair Jerome Powell’s speech, as well as key data reports on US non-farm payroll and factory orders.
Experts predict that gold is likely to trade within a narrow range with a positive bias ahead of crucial US data releases. The uncertainty surrounding interest rate cuts by the Federal Reserve continues to influence the market, with traders speculating on a potential rate cut at the September meeting.
