Gold, Silver Prices Rise Amid Oil Crash and Weaker Dollar
Gold and silver prices saw an uptick on the Multi Commodity Exchange (MCX) in early trade on August 26. MCX gold October futures rose by 0.16% to ₹1,63,146 per 10 grams, while MCX silver September futures climbed 0.64% higher at ₹2,45,700 per kg around 9:10 AM.
The boost came amid a crash in crude oil prices and a decline in the US dollar ahead of key inflation data from the US. International Brent crude futures plummeted by 3% to trade near $86 per barrel, keeping the US dollar index below the 99 mark.
Meanwhile, Iran has resumed talks with neighbouring Oman on managing the strategic Strait of Hormuz waterway. However, uncertainty over the Middle East conflict persists as Iran warned that Washington's new sanctions on Tehran will not bring peace to the region.
China is also sending a message of defiance to the Trump administration over Beijing's economic ties with Tehran. Hours after the US sanctioned dozens of Chinese entities and threatened to target an unspecified 'major financial institution' for its dealings with Tehran, China responded by saying its relationship with Iran 'should not be disrupted or undermined'. The country will take 'all necessary measures' to safeguard its interests, according to Foreign Ministry spokesperson Lin Jian.