Gold and silver prices traded higher on Tuesday, tracking gains in global bullion markets as easing crude oil prices and persistent geopolitical tensions in the Middle East boosted demand for safe-haven assets
MUMBAI — Gold and silver prices traded higher on Tuesday, tracking gains in global bullion markets as easing crude oil prices and persistent geopolitical tensions in the Middle East boosted demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), gold futures for August delivery climbed as much as 1.03 per cent or INR 1,460 to touch an intraday high of INR 1,42,848 per 10 grams at around 11:20 am. Meanwhile, silver futures for September delivery rose 1.54 per cent or Rs 3,380 to an intraday high of INR 2,21,780 per kg.
At the last count, the yellow metal was trading at INR 1,42,741, up INR 1,353 or 0.96 per cent after touching an intraday low of INR 1,42,157.
On the other hand, the white metal at INR 2,21,402, gaining INR 3,002 or 1.37 per cent after hitting a session low of INR 2,19,200 so far.
Earlier in the day, gold and silver opened at INR 1,42,386 per 10 grams and INR 2,19,200 per kg, respectively, on the commodity exchange.
The rally in domestic bullion prices mirrored global trends after Brent crude slipped below the $90-a-barrel mark amid reports of diplomatic efforts to de-escalate the conflict in the Middle East.
International gold prices also moved higher after oil prices retreated following reports that the US had ended its latest round of airstrikes targeting Iran.
The latest developments follow a sharp rally in crude oil prices that briefly pushed Brent above the $90-a-barrel level, fuelling concerns over higher global inflation and the possibility of further monetary tightening by major central banks, including the US Federal Reserve.
According to the commodity market experts, bullion prices have remained volatile in recent weeks as investors weigh geopolitical risks against expectations for the US Federal Reserve's interest rate path.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold by increasing the opportunity cost of holding them, they added.
They further noted that persistent geopolitical uncertainty has continued to support safe-haven demand, offsetting pressure from a stronger US dollar.