Gold – Prices Hold Steady as Silver Declines in Early MCX Trade
Gold – Gold remained largely unchanged while silver moved lower in early trading on Monday, as falling crude oil prices eased concerns that the US Federal Reserve may need to maintain a tighter interest rate stance for longer.
Gold futures for August 5 delivery began trading on the Multi Commodity Exchange at Rs 1,47,135 per 10 grams, marking a decline of Rs 243, or 0.16 per cent, from the previous closing price of Rs 1,47,378.
Gold Shows Limited Movement During Session
By around 11 am, gold futures were quoted at Rs 1,47,177 per 10 grams, down Rs 200 or 0.14 per cent. During the session, the contract fell to an intraday low of Rs 1,47,032, while the day’s high stood at Rs 1,47,509 per 10 grams.
The modest movement in domestic gold prices came even as international markets showed stronger buying interest. Traders continued to assess changes in energy prices, inflation expectations and the likely direction of monetary policy in the United States.
Silver Futures Extend Early Losses
Silver futures for September 4 delivery opened at Rs 2,36,393 per kg on MCX, lower by Rs 1,017 or 0.42 per cent compared with the previous close of Rs 2,37,410.
At around 11 am, silver was trading at Rs 2,36,198 per kg, down Rs 1,212 or 0.51 per cent. The metal touched a low of Rs 2,36,001 per kg during the day, while its intraday high was recorded at Rs 2,37,676 per kg.
Despite the decline in domestic trade, silver remained above its short-term moving average, suggesting that market participants were still watching for a possible recovery if broader commodity sentiment improves.
Global Gold and Silver Prices Rise
International precious metal prices moved higher in early trade. COMEX gold rose around 1 per cent to $4,173.24 per ounce, while COMEX silver gained nearly 2 per cent to trade at $62.29 per ounce.
The rise in overseas prices reflected continued demand for precious metals amid uncertainty over interest rates and global economic conditions. Gold is often viewed as a defensive asset during periods of financial market volatility, while silver also draws support from industrial demand expectations.
Technical Levels Remain in Focus
Commodity analysts said gold was holding close to its two-week high and remained above important short-term moving averages. This trend indicates that the metal continues to have underlying support despite the small decline seen in domestic futures.
Market experts identified Rs 1,48,750 per 10 grams as an immediate resistance level for gold. A sustained move above this level could strengthen the upward trend and attract additional buying interest in the futures market.
For silver, analysts said the next major resistance level is near Rs 2,45,184 per kg. While the metal opened lower, its position above short-term technical indicators may support a rebound if buying activity returns.
Crude Oil Decline Influences Market Sentiment
Crude oil prices fell in the international market after OPEC+ agreed to increase production targets for August. The decision eased concerns about possible supply shortages and added pressure on energy prices.
Brent crude declined by 55 cents, or 0.76 per cent, to $71.55 per barrel. US West Texas Intermediate crude also slipped by nearly 1 per cent, falling 68 cents to trade below $69 per barrel.
Lower oil prices can reduce inflationary pressure, which may influence expectations around future interest rate decisions by the US Federal Reserve. This development is being closely tracked by commodity traders, as changes in rate expectations often affect the outlook for gold, silver and other global assets.