Gold and Silver Prices Soar Amid Geopolitical Tensions and US Economic Data
Gold and silver prices surged on August 4 as investors awaited the RBI's upcoming repo rate decision. Market experts attributed the gains in gold to renewed geopolitical tensions in West Asia and investor caution ahead of crucial US economic releases.
The Multi Commodity Exchange (MCX) saw gold futures for October delivery rise by Rs 682, or 0.48%, to Rs 1,43,597 per 10 grams. Silver outperformed the yellow metal, with September futures climbing Rs 2,670, or 1.23%, to Rs 2,19,416 per kg.
Gaurav Garg, Head of Research at Lemonn Markets Desk, said gold continued to attract safe-haven demand amid heightened geopolitical uncertainty. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, noted that gold traded with modest gains as markets balanced expectations of a prolonged higher interest rate environment with anticipation surrounding upcoming US employment data.
Renisha Chainani, Chief Research Officer (CRO) at Augmont, said investors were weighing mixed signals over possible diplomatic engagement between the US and Iran while closely tracking US labour market reports for indications on the Fed's future policy path. Stronger-than-expected US manufacturing data reinforced expectations of healthy industrial demand for silver.