Oil Price Slump Sends Gold and Silver Soaring
Gold and silver prices surged on Thursday in the domestic market after a sharp fall in oil led to hopes that the US Federal Reserve will keep interest rates unchanged. The Multi Commodity Exchange saw MCX silver futures for September 2026 delivery rise by Rs 3,400 to Rs 2,42,999 per kg, while gold futures for October 2026 delivery increased by Rs 1,285 to Rs 1,60,898 per 10 grams.
The international gold market also saw a boost, with spot gold rising 0.8% to $4,630.09 per ounce and U.S. gold futures gaining 0.7% to $4,685.50. Spot silver climbed 1.7% to $69.28, while platinum gained 1.1% to $1,848.57.
The Federal Reserve's policy direction is under scrutiny, with investors eagerly awaiting remarks from Chair Kevin Warsh at the annual Jackson Hole symposium in Wyoming. Markets are pricing in a 36.5% probability of a US rate hike in September and a 72.7% chance by December, according to the CME FedWatch Tool.
Data released on Wednesday showed that U.S. inflation remained unchanged in July, staying above the Fed's 2% target for the 65th consecutive month. The pause in decline is likely to add to the central bank's debate over whether to raise interest rates or keep them unchanged.