Middle East Uncertainty Weighs on Gold and Silver Prices
Gold and silver prices were volatile on Monday as investors assessed mixed signals from the Middle East. The MCX gold October futures were flat at ₹1,51,870 per 10 grams, while the MCX silver September futures were 0.90% up at ₹2,33,532 per kg.
The US dollar index inched up by 0.20%, making greenback-denominated bullion slightly more expensive for buyers in other currencies. The price of crude oil jumped by 1% to trade above $84 per barrel due to uncertainty over the reopening of the Strait of Hormuz.
Iran said negotiations with Oman on establishing new shipping routes were nearing completion, but reiterated that the US must meet additional conditions before the waterway is reopened. Tensions in the region remain high, with Yemeni military spokesperson saying that Iran-backed Houthis have resumed attacks on the Red Sea port city of Mocha.
The focus is also on key US macro prints this week, including the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday, for fresh cues on the US Fed's interest rate trajectory.