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Gold and silver prices declined on MCX, with gold hovering near ₹1.52 lakh per 10 grams and silver slipping below ₹2.50 lakh per kg. Weak global cues, a stronger dollar, and the US Federal Reserve’s cautious stance on interest rate cuts pressured precious metals.
MCX Gold, Silver Decline on Global Uncertainty and Strong Dollar
New Delhi: Both gold and silver witnessed weakness today on the domestic futures market, MCX. Gold was seen trading around ₹1.52 lakh per 10 grams, while silver remained below ₹2.50 lakh per kilogram. Gold opened at ₹1,51,941 and soon slipped to ₹1,51,712. Silver, meanwhile, opened at ₹2,45,000 before falling to ₹2,43,786.
Weak signals from the global market have directly impacted domestic prices. US-Iran tensions and rising crude oil prices have increased investor concerns. The dollar index crossing 100 is also putting pressure on precious metals.
Gold is trading around $4985 in the international market. In fact, expectations of an imminent interest rate cut from the US Federal Reserve have diminished. Investors are becoming cautious due to a strong dollar and fears of rising inflation, which is dimming the shine of gold.
Several important signals have emerged following the recent US Fed meeting. Fed Chairman Jerome Powell clearly stated that interest rates will not be cut until a substantial reduction in inflation is seen. Furthermore, uncertainty has been expressed regarding the situation in the Middle East, suggesting that a tight monetary policy may continue for the time being.
Experts believe that gold and silver on MCX may trade in a narrow or weak trend for the time being. Investors are advised to trade based on market movements and pay special attention to risk management.
Gold and silver prices are currently being strongly influenced by global events, the strengthening of the dollar, and the Fed's policies. Consequently, prices may remain volatile in the coming days. Investors should take investment and trading decisions with caution.
