As soon as the commodity market opened this morning, there was a rise in the prices of gold and silver. Gold and silver prices rose up to 1% in morning deals on MCX on Thursday, September 3, supported by a decline in the US dollar and bond yields.
In Thursday morning trade, gold on MCX was up 0.75% at ₹1,53,542 per 10 grams, while silver was up 0.88% at ₹2,38,340 per kg. Before this, the prices of gold and silver were falling for the last several days.
On the other hand, gold has become expensive in the international market also. Spot gold for immediate delivery was up 0.1% at $4,386.94 an ounce at 7:56 a.m. in Singapore. Silver rose 0.1% to $65.38 an ounce. There was very little change in platinum and palladium. A day earlier it had gained 1%, stopping the three-day decline.
Due to rise in gold prices
- Gold prices continued to rise after US President Donald Trump ruled out prolonged military action in the Middle East. This reduced inflation concerns arising from the latest increase in energy prices.
- The pace of increase in oil prices has slowed down. At the same time, the new fighting had created fear of a long war, which increased the risk of inflation. Apart from these,
- The value of the dollar declined slightly on Wednesday as the Japanese currency yen registered a sharp rise. Let us tell you that a weak dollar makes gold more attractive for foreign currency investors.
The impact of tariffs is decreasing
New York Federal Reserve Bank Chairman John Williams said inflation is showing signs of slowing as the impact of the tariffs wears off, and higher energy prices are not spilling over to other services. This reduced expectations of interest rate hike. This was further supported by the data which showed that American companies added new jobs at a slow pace in August.
All this comes at a time when Fed Chairman Kevin Wersh’s tough speech on Friday raised expectations that the US central bank may have to raise interest rates to control inflation at its meeting in two weeks.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and not those of Live Hindustan. Investing in commodity markets is subject to risks and please consult your advisor before investing.)
