Gold and silver prices opened mixed on the MCX on Thursday even as softer-than-expected US consumer inflation reduced expectations of an imminent Federal Reserve rate hike. Investors are now awaiting producer price data for further clues on the direction of inflation.
In the domestic market, MCX silver futures for September 2026 delivery were down by Rs 535 at Rs 2,37,300 per kg. Gold futures for October 2026 delivery rose by Rs 1,400 in two sessions to Rs 1,55,145 per 10 grams.
Fed policymakers are likely to face less pressure to raise interest rates next month after data released on Wednesday showed inflation slowing for a second consecutive month on a year-over-year basis. However, the data may offer limited reassurance that monetary policy remains tight enough to keep inflation on a downward path.
The Consumer Price Index rose 3.4% in the 12 months through July, easing from 3.5% in June, according to the Bureau of Labour Statistics. The reading was in line with economists' expectations.
Markets are now pricing in a 40% probability of an interest rate hike at the Fed's September meeting, down from around 54% a week earlier, according to the CME FedWatch Tool. Expectations of lower interest rates generally support gold by reducing the opportunity cost of holding the non-yielding asset.
Investors will now turn their attention to the Producer Price Index, due later on Thursday, for further evidence that price pressures are easing.
However, the July CPI data did not reflect the latest increase in oil prices, as attacks on ships in the Middle East continued and talks aimed at ending the Iran-war reached an impasse.
Also read: Gold prices jump 7% to log best weekly gain in 8 months. Start of another yellow metal bull run?
Gold, silver international prices
Spot gold gained 0.6% to $4,433.62 per ounce by 0108 GMT, after rising about 1% earlier to its highest level since June 5. US gold futures for December delivery also climbed 0.6% to $4,493.
Among other precious metals, spot silver rose about 1% to $65.91 per ounce after touching its highest level since June 22 in the previous session. Platinum gained 0.3% to $1,762.70, while palladium rose 0.1% to $1,371.20.
How should you trade gold?
Jigar Trivedi of IndusInd Securities suggests that MCX Gold would witness profit booking, and Rs 1,54,000 per 10 grams is support for the day.
Silver prices continued their rally as investment demand picked up. MCX Silver September could rise to Rs 2,40,000 per kg, though profit booking cannot be ruled out.
Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,13,688/8 grams while pure gold (24 carat) prices stand at Rs 1,24,016/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,13,568/8 grams while pure gold (24 carat) prices stand at Rs 1,23,896/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,13,608/8 grams while pure gold (24 carat) prices stand at Rs 1,23,936/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,13,568/8 grams while pure gold (24 carat) prices stand at Rs 1,23,896/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
