Gold and silver prices opened lower on the MCX, tracking weakness in international bullion markets amid a stronger US dollar and fading hopes of near-term Federal Reserve rate cuts after robust US jobs data.
Precious Metals Decline Globally Ahead of Key US Inflation Data
New Delhi: Gold and silver prices opened lower on the Multi Commodity Exchange (MCX) on Thursday. Bullion prices were under pressure due to a stronger US dollar in the international market and weakening expectations of an early interest rate cut. Investors are now eyeing upcoming inflation data, which could provide further indications of monetary policy.
Gold for the April contract on MCX opened 0.47% lower at ₹1,58,000 per 10 grams, down from its previous close of ₹1,58,755. During trading, gold reached a low of ₹1,57,701. Later, it was seen trading at ₹1,58,079 per 10 grams, down about ₹676, or 0.43%.
Silver jumps 2.7% on MCX; Gold edges higher as wedding demand supports prices
Meanwhile, silver for the March contract opened at ₹2,61,361 per kg, down ₹1,657, or 0.63%, from its previous close of ₹2,63,018. Intraday, silver slipped to ₹2,60,453. Later, it was seen trading at ₹2,61,068 per kg, down around ₹1,950, or 0.74%.
Gold and silver prices also declined in the global market. Strong January employment data diminished expectations of an early interest rate cut by the US Federal Reserve, strengthening the dollar and increasing pressure on precious metals. Spot gold fell 0.4% to $5,058.64 per ounce, while US gold futures for April delivery fell 0.3% to $5,080 per ounce.
Gold and Silver prices slip on MCX as selling pressure continues; Investors advised caution
Spot silver fell 1.4% to $82.87 per ounce, after rising nearly 4% in the previous session. Among other precious metals, platinum fell 1% to $2,110.63 per ounce, while palladium rose 0.4% to trade at $1,707.17 per ounce.
Market experts say a strong dollar and uncertainty about interest rates may keep gold and silver under pressure for the time being. Investors are now focused on US inflation data to be released on Friday, which could play a key role in determining the Fed's future policy. Consequently, volatility in the bullion market is expected to continue in the coming days.
