Gold Prices Rise, Silver Drops Amid US Inflation Focus
Gold prices rose in early deals on the Multi Commodity Exchange (MCX) on Monday, while silver declined due to profit booking. The MCX gold October futures were up 0.42% at ₹1,63,120 per 10 grams, whereas the MCX silver September contracts were down 0.58% at ₹2,45,171 per kg.
The dollar index hovered near multi-month lows, while US long-duration bond yields eased after the Treasury's announcement to buy back more long bonds. This increased the appeal of gold as a safe-haven asset.
The focus is now on the July Personal Consumption Expenditures (PCE) price index data, which is the Fed's preferred inflation gauge, on Wednesday, 26 August, and the US Fed Chair Kevin Warsh's speech at the annual gathering in Jackson Hole, Wyoming, this week for cues on the Fed's interest rate trajectory.
Ravi Singh, Chief Research Officer at Master Capital Services, said that gold has maintained strong bullish momentum and is trading near three-month highs after a sharp weekly rally of more than 5%. The recent breakout above the descending trendline has strengthened the overall structure.