Gold and silver prices decline on MCX due to profit booking; elevated crude oil, US Fed's policy decision in focus
AI Summary
MCX gold and silver prices fell on July 23 due to profit-taking after a previous surge, as rising crude oil prices linked to US-Iran tensions raised expectations for US Federal Reserve monetary tightening. Gold August contracts dropped 0.32% to ₹1,45,207 per 10 grams, while silver September futures fell 0.23% to ₹2,26,474 per kg. Investors are closely watching the upcoming Fed meeting, with a 61% chance of a rate hike anticipated in September.
A day after jumping up to 2%, MCX gold and silver prices declined on profit-taking in morning deals on Thursday, 23 July, as rising crude oil prices, driven by the US-Iran conflict, fueled expectations of US Federal Reserve monetary tightening.
MCX gold August contracts were 0.32% down at ₹1,45,207 per 10 grams, while MCX silver September futures were 0.23% down at ₹2,26,474 per kg around 9:05 am.
In the previous session, the MCX gold August futures contract jumped 2%, and the silver September futures contract clocked a gain of nearly 1.5%.
US gold futures declined about half a per cent to trade near $4,115 per troy ounce on Thursday after touching a two-week high of $4,171 per troy ounce in the previous session.
Gold and silver prices declined as oil prices jumped over 2% to their highest in more than six weeks, as the US continued its airstrikes on Iran, while Iran-backed Houthis target oil tankers in the Red Sea.
The September contract of the international crude oil benchmark, Brent crude, traded over $96 per barrel on Thursday morning.
The dollar index rose to 101.13 but later eased slightly, still trading near 101 and weighing on gold prices.
Middle East tensions show no signs of abating, as US President Donald Trump said Iran is not ready to make a deal yet, even as the US military launched fresh strikes on Iran’s military government and infrastructure sites.
Amid rising geopolitical risks, investors await next week's monetary policy decision of the US Federal Reserve. The Fed is expected to keep rates unchanged on 29 July, but expectations of rate hikes this year remain strong.
"Investors await next week’s Federal Reserve meeting. While policymakers are expected to keep rates unchanged, markets continue to price in the possibility of a rate hike later this year, with traders seeing a 61% chance of an increase in September," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
(This is a developing story. Please check back for fresh updates.)
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Log in to our website to save your bookmarks. It'll just take a moment.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Original Article
Published on Livemint