Gold, Silver Prices Rise as Interest Rate Hike Expectations Boost Precious Metals
Precious metals such as gold and silver have seen a significant recovery in August. The expectation of an interest rate hike by the U.S. Federal Reserve played a key role in influencing prices, while the weakening of the U.S. Dollar also contributed to their rise.
Comex gold saw a gain of 9.73% in August to settle at $4,497.3/ounce by month end, while Comex silver gained 16.32% to settle at $67.2/ounce. In the local markets, MCX Gold and MCX Silver also closed on a strong note, with gains of 7.75% and 8.46%, respectively.
The short-term trend for both gold and silver has turned positive after breaking out above key resistance levels. For Comex gold, this means it could head to the next target zone of $4,750-$4,800 until the support level at $4,200-$4,220 is breached.