MCX Gold, Silver Decline as Dollar Strengthens
New Delhi: Gold and silver prices fell on the Multi Commodity Exchange (MCX) on Friday (April 10) morning. June gold futures fell 0.60% to ₹1,52,561 per 10 grams. Meanwhile, May silver futures fell 0.70% to ₹2,42,067 per kilogram.
According to experts, the main reasons for the decline in gold and silver prices are profit-booking by investors and the strengthening of the US dollar. The dollar index rose 0.10% to 98.93, making gold more expensive in the international market and impacting demand.
The market is also closely monitoring the ongoing developments between the US and Iran. Investors are cautious due to a potential ceasefire and the associated uncertainties. Additionally, crude oil prices have also seen an increase, further strengthening demand for the dollar.
The US Federal Reserve's preferred inflation indicator, the Personal Consumption Expenditure (PCE), recorded a 2.8% year-on-year increase in February. Investors are now eyeing the Consumer Price Index (CPI) data for March, which could determine future direction.
In the international market, Brent crude prices have risen by nearly 1% to around $97 per barrel, while WTI crude is trading above $98.5 per barrel. Rising crude oil prices have also played a role in maintaining the dollar's strength.
Market experts believe that fluctuations in gold and silver prices may continue for the time being. Therefore, investors should closely monitor global cues and economic data to make timely investment decisions.
