Gold, silver prices decline amid weak global cues

The precious metal traded almost flat at Rs 74,250 per 10 grams in local markets in the national capital, marketmen said. Silver traded at Rs 90,000 per kg.

Update: 2024-07-02 16:45 GMT

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NEW DELHI: Gold and silver prices declined on Tuesday, tracking a bearish trend in the international markets amid uncertainty over the interest rate cuts by the US Federal Reserve.

In the futures trade on the Multi Commodity Exchange (MCX), gold for August delivery traded lower by Rs 122 or 0.17 per cent at Rs 71,532 per 10 grams. During the day, the precious metal hit a low of Rs 71,432 per 10 grams.

Silver prices also eased in the spot as well as futures markets.

Silver contracts for September delivery were declined by Rs 81 to Rs 89,669 per kg on the MCX.

Gold traded at Rs 71,692 per 10 grams in spot markets in Mumbai on Tuesday while silver was quoted Rs 88,015 per kg.

The precious metal traded almost flat at Rs 74,250 per 10 grams in local markets in the national capital, marketmen said. Silver traded at Rs 90,000 per kg.

"Gold prices continue to trade in a narrow range keeping market participants on edge, as along with ambiguity regarding rate cut expectations market is also taking cues from the US economic data points.

"Limited updates regarding geo-political tensions weighed on sentiment, however, Fed officials in most of their appearances promoted a cautious approach and delay in rate cuts this year," Manav Modi, Senior Analyst of Commodity Research at Motilal Oswal Financial Services Ltd, said.

Safe haven demand has emerged in recent weeks amid the challenging political backdrop, upcoming elections in the UK and the US are raising concerns of policy shifts, hence cushioning prices, Modi said.

In the overseas markets, both gold and silver were trading lower at USD 2,329.60 per ounce and USD 29.54 per ounce, respectively.

Market participants on Tuesday will keep an eye on US Federal Reserve Chair Jerome Powell’s speech. This week's focus will be on US non-farm payroll and factory orders data and also on Federal Open Market Committee (FOMC) meeting minutes, he added.

According to Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, gold is expected to range trade with a slight positive bias ahead of the key US data like ADP employment, ISM services, nonfarm payroll, etc.

These data reports could give the overall outlook for interest rates and impact gold prices.

According to market experts, gold is trapped in a range as the US Federal Reserve remains reluctant to commit to a date for when it will begin cutting interest rates.

Further, traders bets on when the Federal Reserve could cut interest rates are perhaps more optimistic, continuing to flag a high probability of the Fed cutting interest rates at the September meeting.

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