Gold prices traded largely unchanged near a two-week peak on Monday as investors reacted to softer crude oil prices and subdued expectations for additional interest rate increases by the US Federal Reserve. On the domestic Multi Commodity Exchange, August gold futures opened slightly lower and fluctuated within a narrow range, reflecting cautious market sentiment.
Silver futures experienced a more noticeable decline, opening down and continuing to retreat during the session. Despite the fall, analysts note that silver remains above its short-term moving averages, suggesting potential support for a rebound toward higher resistance levels. The drops in precious metals contrasted with their rises on international exchanges, where COMEX gold gained around 1 percent and silver surged by roughly 2 percent in early trading.
The downward pressure on crude oil further shaped market dynamics, as global benchmark Brent crude and US West Texas Intermediate prices fell on news that OPEC+ agreed to increase production quotas for August. This move alleviated concerns over tight global supply, cooling inflation worries that usually drive demand for safe-haven assets like gold and silver.
Market experts highlight that gold continues to face immediate resistance near Rs 1,48,750 per 10 grams, with any sustained breakout poised to intensify buying momentum. For silver, the next technical resistance stands at Rs 2,45,184 per kilogram, reinforcing cautious optimism despite recent losses.
Overall, the interplay between easing inflation fears linked to energy prices and the Federal Reserve’s monetary policy outlook remains central to precious metals’ near-term performance, influencing investor positioning and price volatility across markets.