Gold Prices Stabilize Above $4,300 Amid Middle East Uncertainty
Gold and silver prices remained volatile in early trade on Monday, August 10, as investors weighed mixed developments in the Middle East. A stronger US dollar and rising crude oil prices put pressure on precious metals.
The MCX saw gold October futures largely unchanged at Rs.1,51,870 per 10 grams, while silver September futures gained 0.90% to Rs.2,33,532 per kg. In the global market, spot gold held steady above $4,300 an ounce, and spot silver climbed 1% to $64.15 an ounce.
Harshal Dasani, Business Head of INVasset PMS, said that the choice between gold and silver in a war-uncertainty environment is like choosing two different jobs. Gold acts as an insurance policy, with central-bank bid support from China's 20-month buying streak, while silver offers faster growth with industrial demand.
Kaynat Chainwala, AVP - Commodity Research at Kotak Securities, noted that gold remains the steadier hedge due to its investment appeal and limited industrial demand. Silver, on the other hand, carries wider swings in price due to its significant industrial demand alongside its investment appeal.