Gold prices edged lower in early trading as investors booked profits following recent gains, while silver continued its upward trend for the third straight session, buoyed by hopes that the US Federal Reserve will pause interest rate hikes. Gold futures for August delivery opened below previous closing levels, reflecting cautious sentiment ahead of key US economic data.
On the Multi Commodity Exchange, gold futures retreated from the previous close, trading near intraday lows around Rs 1,43,770 per 10 grams after earlier reaching Rs 1,44,448. In contrast, silver futures for September surged, hitting intraday highs near Rs 2,32,339 per kilogram, supported by optimistic market views on inflation and monetary policy.
Internationally, gold slipped modestly to just above $4,070 per ounce, while silver inched up to approximately $60.59 per ounce. Analysts point to the US Federal Reserve chairman’s recent comments indicating no immediate need to increase interest rates, which has strengthened silver’s appeal as a hedge against inflation.
Market experts attribute gold’s slight decline to profit-taking after prices corrected from a recent peak at over $4,115 per ounce on COMEX. However, softer US jobs figures and easing crude oil prices helped contain further drops in gold. Silver’s sustained gains are linked to easing inflation pressures and positive investor sentiment around the Fed’s cautious stance on monetary tightening.
Overall, market participants are closely watching upcoming US employment data for clearer signals on the Fed’s interest rate path, with precious metals responding to shifts in economic expectations and policy outlooks.