Weak Dollar, Rising Bond Yields Weigh on Gold, Silver Prices
Gold and silver prices were flat on India's Multi Commodity Exchange (MCX) on Thursday, despite soft US inflation data that weakened expectations of a Federal Reserve rate hike in September.
The MCX gold October futures rose by just 0.05% to ₹1,54,960 per 10 grams, while the MCX silver September contracts fell by 0.16% to ₹2,37,450 per kg around 9:10 AM.
The US dollar index reclaimed its mark of 100.02, making gold more expensive for buyers in other currencies and contributing to a lackluster market. The 10-year bond yield also climbed to 4.69%, weighing on gold's safe-haven appeal.
US inflation data showed the Consumer Price Index (CPI) rose by only 0.1% month-on-month in July, down from June's drop of 0.4%. Year-on-year, the CPI increased 3.4%, slightly lower than June's 3.5% rise.
The current inflation and jobs market trends have strengthened chatter that the US Fed may delay rate hikes, with traders now seeing a 38% chance of an interest rate hike in September, down from 48.4% on Tuesday.