Once again big news has come for those who buy gold and silver. On Monday morning, the prices of both the precious metals were seen trading rapidly in the domestic futures market MCX. Gold and silver were supported by the weak US dollar and soft expectations regarding the interest rates of the US Federal Reserve in September. Although, US-Iran tension And the rising prices of crude oil have also increased the concern of the market.
By 9:15 am on MCX, gold with October expiry rose 0.37% to ₹1,55,079 per 10 grams. That is, there was a good rise in the price of gold in the early trade. Similarly, September futures silver rose by 0.74% to ₹ 2,37,678 per kg. In this way, there was an upward trend in both the precious metals in the beginning of Monday.
When the dollar becomes weak, gold gets support
A major reason for the rise in gold prices is the weakening of the US dollar. When the dollar weakens, it becomes a little cheaper for people in other countries to buy gold. This may increase the demand for gold and provide support to prices. Apart from this, the expectation of interest rate cut in America is also good news for gold. When interest rates are low, investors may move towards investments like gold. This is the reason why gold prices are strengthening at present.
Crude oil increased concern
The rise in crude oil prices amid the rise in gold remains a matter of concern for the market. In the international market, Brent crude rose by about 1% to around $ 90 per barrel. If oil remains expensive, there is a danger of inflation increasing in many countries of the world. This may make it difficult for the US Fed to cut interest rates, which may impact gold prices.
Now keep an eye on US inflation figures
The CPI inflation rate in the US for July was 3.4% on an annual basis, which is slightly less than 3.5% in June. Now the market is eyeing the PCE inflation data to be released on August 26. This data may indicate the Fed’s next interest rate policy.
How much have prices increased so far in August?
On August 17, the price of gold on the futures market (MCX) was trading at ₹ 1,55,079 per 10 grams. If we compare this with the price of August 3, then gold was at the level of ₹ 1.42 lakh per 10 grams. This means that gold has become costlier by about Rs 13 thousand in two weeks. Silver futures prices on MCX reached ₹2,37,678 per kg. On August 3, silver was trading at ₹2.14 lakh per kg. In this way, a big increase of more than ₹ 23,000 has been seen in silver also.
