Gold and silver experienced significant price swings, reflecting market uncertainty driven by expectations that the US Federal Reserve may resume interest rate increases in the near term. Gold futures on the Multi Commodity Exchange (MCX) opened lower but recovered to reach intraday highs before dipping again, illustrating volatile trading patterns.
Silver followed a similar trajectory, opening with losses yet showing rebounds during the session. Both metals traded near their weakest positions in several months domestically and internationally. On COMEX, gold dropped to levels near an eight-month low, while silver hovered close to its lowest point since December.
Market analysts attributed the downward pressure on precious metals to a stronger US dollar, which surged to a one-year peak, and investor anticipation of renewed Fed tightening as early as September. Additionally, a steep decline in US technology stocks pushed some investors to liquidate gold and silver holdings to offset losses in other investments, amplifying selling pressure.
Despite easing geopolitical tensions and lower crude oil prices helping to ease inflation concerns, market participants remain cautious. Upcoming US inflation data is expected to heavily influence the Federal Reserve’s monetary policy decisions in the near future.
Meanwhile, crude oil prices also faced downward pressure. Brent crude fell about two percent, trading near $72 per barrel, while US West Texas Intermediate (WTI) dropped below the $70-per-barrel threshold, continuing a trend of weakness in energy markets amid shifting economic forecasts.