Gold, silver trade lower amid weak global cues
New Delhi, June 29
Gold and silver prices traded lower on Monday, with the yellow metal slipping below the Rs 1.44 lakh mark and the white metal hovering near Rs 2.23 lakh amid weak global cues.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at Rs 1,44,180 per 10 grams, marginally higher than the previous close of Rs 1,44,162. However, selling pressure emerged later.
At around 10 am, the yellow metal was trading at Rs 1,43,470, down Rs 692 or 0.48 per cent. So far in the session, it has touched an intraday high of Rs 1,44,180 per 10 grams -- its opening price -- and a low of Rs 1,43,454, down 0.49 per cent or Rs 708.
On the other hand, silver futures (September) traded largely flat in early deals.
The white metal opened at Rs 2,23,912 per kg against the previous close of Rs 2,23,472. At the last count, it was trading at Rs 2,23,174 per kg, down Rs 298 or 0.13 per cent.
So far during the session, silver has touched a high of Rs 2,24,248 per kg and a low of Rs 2,22,641, down 0.37 per cent or Rs 831.
Similarly, in the international market, precious metals were trading lower, with COMEX gold down 0.41 per cent at $4,078 per ounce, while COMEX silver declined more than 1 per cent to $58.52 per ounce.
According to commodity market experts, gold remained under pressure as investors turned cautious amid renewed geopolitical tensions and expectations that the US Federal Reserve could keep interest rates higher for longer. A stronger US dollar and elevated US Treasury yields also weighed on bullion prices.
"Safe-haven demand received only limited support after fresh exchanges between the US and Iran over the weekend strained the fragile ceasefire. While the recent US-Iran peace framework had eased concerns over energy-driven inflation by pulling crude oil prices lower, renewed attacks on vessels near the Strait of Hormuz have revived uncertainty over the region," the analysts said.
Investors will now closely track key US economic data, including consumer confidence, ADP employment, jobless claims and non-farm payrolls, for further cues on the Fed's policy outlook and the direction of the US dollar, they added.
In the currency market, the Indian rupee opened five paise higher at 94.35 against the US dollar on Monday, compared with its previous close of 94.40.
Meanwhile, international benchmark Brent crude rose about 1 per cent to $72.78 per barrel, while US West Texas Intermediate (WTI) crude gained more than 2 per cent to nearly $71 per barrel.
— IANS
Reader Comments
Good time for investors to accumulate on dips. Gold has always been a safe bet in India, especially with the rupee weakening. Silver also looks promising for industrial demand. Just keep a long-term view! 📈
The way global tensions are affecting markets, it's worrying. My family has some gold jewellery but we rarely sell. For saving purposes, maybe fixed deposits or sovereign gold bonds are better than futures trading for common people.
I think the article misses how much Indian weddings and festivals (like Diwali coming up) drive demand. Even if global cues are weak, local buying could support prices. Still, I'll wait for a further dip before buying silver coins this year. 🪙
These high prices are a headache for small jewellers like me. Customers are hesitating to buy, and we have to adjust margins. The government should consider reducing import duties on gold to stabilise the market for everyone.
As an expat working in Dubai, I find it interesting how closely gold prices track global events. The Iran-US tensions are real, but I feel the market overreacts sometimes. For Indians, gold remains cultural, but I'd advise diversifying with stocks too.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.