Gold, Silver Prices Continue to Rise as RBI Keeps Repo Rates Unchanged
Gold and silver prices continued to rise on Wednesday, August 5, as investors welcomed the Reserve Bank of India's decision to keep the repo rate unchanged at 5.25 percent for the fourth straight monetary policy review.
The RBI's move reflected a balanced approach, according to Ajitabh Bharti, Co-founder and Executive Director at CapitalXB, who noted that while the ongoing US-Iran conflict continues to cloud the global inflation outlook, the central bank is expected to remain focused on supporting economic growth while closely monitoring inflation.
On the Multi Commodity Exchange (MCX), gold futures for October delivery climbed 1.5 percent to Rs 146,464 per 10 grams, marking the second consecutive session of gains. According to Gaurav Garg, Head of Research at Lemonn Markets Desk, gold continued to attract safe-haven buying as fresh geopolitical uncertainty prompted investors to increase exposure to the yellow metal.
Silver also traded firmly on the back of supportive global cues, with silver futures for September delivery trading at Rs 219,416 per kg, up 1.23 percent from the previous close. Renisha Chainani, Chief Research Officer at Augmont, said silver prices remained supported as investors assessed mixed signals over possible US-Iran discussions while awaiting key US labour market data for fresh clues on the Federal Reserve's interest rate path.
Market participants are now closely watching the ADP employment report and the US non-farm payrolls data later this week, which are expected to provide further guidance on the Fed's monetary policy outlook and influence the direction of precious metal prices.