Gold and Silver Prices Swing Wildly Amid Fed Rate Hike Worries

Gold and silver prices swung wildly on Thursday as investors continued to weigh the impact of potential US Federal Reserve rate hikes. The precious metals had initially dropped due to expectations of further interest rate increases, but later regained some ground amidst easing geopolitical tensions.

The Multi Commodity Exchange (MCX) saw gold futures open at Rs 1,40,672 per 10 grams, down Rs 598 or 0.42 percent from the previous close. However, buying interest emerged later in the session, with gold rising to an intraday high of Rs 1,41,989 and dipping to a low of Rs 1,40,543.

Silver futures followed a similar trend, opening at Rs 2,10,308 but touching both an intraday high of Rs 2,15,950 and a low of Rs 2,10,043. The white metal declined by as much as 1.42 percent from the previous close.

Analysts attributed the pressure on precious metals to a stronger US dollar, which has climbed to a one-year high, and growing expectations that the US Federal Reserve could resume rate hikes as early as September. Some investors also liquidated bullion holdings to cover losses in other asset classes following a sharp decline in US technology stocks.