Mumbai: Gold and silver showed volatility on Thursday, swinging between gains and losses amid expectations of further US Federal Reserve rate hikes and easing geopolitical tensions.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at Rs 1,40,672 per 10 grams, down Rs 598 or 0.42 per cent from the previous close of Rs 1,41,270.
However, buying interest emerged later in the session, with the yellow metal rising Rs 719 or 0.50 per cent to touch an intraday high of Rs 1,41,989 as of 11:38 am. It slipped to an intraday low of Rs 1,40,543, down Rs 727 or 0.51 per cent from the previous close.
On the other hand, silver futures (July) also followed a similar trend.
The white metal opened at Rs 2,10,308, down Rs 2,767 or 1.30 per cent from the previous close of Rs 2,13,075.
At the time of writing, silver had touched an intraday low of Rs 2,10,043, a decline of Rs 3,032 or 1.42 per cent.
However, silver also touched an intraday high of Rs 2,15,950, up Rs 2,875 or 1.34 per cent.
In the international market, gold and silver were traded lower. COMEX gold was down 0.42 per cent at $3,991.80 per ounce, while COMEX silver declined 1.65 per cent to $57.13 per ounce at the time of writing.
According to analysts, gold and silver futures have extended their losses in both domestic and international markets, with gold hovering near an eight-month low and silver trading around its weakest levels since December.
They attributed the pressure on precious metals to a stronger US dollar, which has climbed to a one-year high, and growing expectations that the US Federal Reserve could resume rate hikes as early as September.
Additional selling emerged after a sharp decline in US technology stocks prompted some investors to liquidate bullion holdings to cover losses in other asset classes, the analysts said.
“While easing geopolitical tensions and lower crude oil prices have reduced inflation concerns, market participants remain focused on upcoming US inflation data for fresh clues on the Federal Reserve’s policy trajectory,” they added.
Meanwhile, crude oil prices remained under pressure, with global benchmark Brent crude falling about 2 per cent to around $72 per barrel and US WTI crude declining 1.83 per cent to trade below the $70-per-barrel mark.
(IANS)
