Soft Oil Prices Ease Rate Hike Expectations for Gold

Gold prices remained steady on Monday as softer crude oil prices reduced expectations of further interest rate hikes by the US Federal Reserve. The Multi Commodity Exchange (MCX) saw gold futures for August 5 open at Rs 1,47,135 per 10 grams, down Rs 243 or 0.16 per cent from the previous close.

However, in the international market, COMEX gold was up 1 per cent at $4,173.24 per ounce, while COMEX silver gained 2 per cent to $62.29 per ounce. According to commodity market experts, gold's steady price near a two-week high indicates underlying strength.

Immediate resistance is seen at Rs 1,48,750 per 10 grams, with a breakout above this level likely to accelerate the upward momentum. Silver, despite opening lower, also continued to trade above its short-term moving average and could move towards the next resistance level of Rs 2,45,184 per kg.

The decline in oil prices came after OPEC+ agreed to raise its production targets for August, easing concerns over global supply shortages. International benchmark Brent crude slipped 0.76 per cent, or 55 cents, to $71.55 per barrel, while US West Texas Intermediate (WTI) crude declined nearly 1 per cent, or 68 cents, to trade below $69 per barrel.