Gold and Silver Prices Tumble Amid Dollar Surge Ahead of Key US Inflation Data
Gold and silver prices took a hit on the MCX on Tuesday morning due to an uptick in the US dollar and bond yields. The MCX gold October contracts were down by 0.14% at ₹1,62,999 per 10 grams, while MCX silver September futures were down by 0.55% at ₹2,42,880 per kg around 9:35 AM.
The dollar index has been in the green for three consecutive sessions, making gold less appealing. The US 10-year and 30-year bond yields also climbed as concerns over inflation and piling US debt triggered a selloff in long-dated debt.
Ravi Singh, Chief Research Officer at Master Capital Services, said MCX gold prices are now approaching the next resistance near ₹1,67,000, while ₹1,60,000 has emerged as the crucial support. As long as prices remain above this level, the bullish momentum is expected to remain intact, and the buy-on-dips strategy continues to be preferred.
The focus is on the US Personal Consumption Expenditures (PCE) price index due on Wednesday and Chair Kevin Warsh's first speech at the Jackson Hole Symposium on Friday for cues on the interest rate trajectory. Oil prices rose by nearly 1% to trade near $93 per barrel amid persistent uncertainty over the reopening of the Strait of Hormuz.