A fall in the prices of gold and silver was seen on the Multi Commodity Exchange (MCX) in India on Thursday. The prices of precious metals in the global market remained under pressure after reaching their lowest level in six months, which also affected the domestic market.
The price of MCX Gold Futures for August delivery fell by ₹ 1,499 or 1.01% and opened at ₹ 1,46,518 per 10 grams. The one for July delivery Silver It fell by ₹ 3,834 i.e. 1.62% and reached ₹ 2,31,671 per kg.
Gold reached its lowest level in six months
The increasing tension between America and Iran has increased the fear of inflation and high interest rates for a long time in the market. Due to this, gold prices slipped to the lowest level in six months. However, later a slight recovery was seen in gold due to return of some purchases.
Spot gold rose 0.4% to $4,089.12 an ounce, while US gold futures fell 0.5% to $4,111.10 an ounce. Spot silver was trading 0.3% higher at $63.86 an ounce.
Inflation concerns increased due to America-Iran tension
According to the report, America has attacked many targets in Iran, after which the tension between the two countries has increased further. Due to this, the prices of crude oil have increased and the concern about increasing inflation has deepened.
Although gold is considered a safe investment to protect against inflation, but when interest rates are likely to remain high for a long time, the pressure on gold increases because it does not earn any interest.
Investors keep an eye on American data
In America, the consumer inflation rate for the month of May has reached the highest level in three years. Now investors are keeping an eye on the Producer Price Index (PPI) data, which may indicate the next interest rate policy of the Federal Reserve.
Experts’ opinion
According to Jatin Trivedi of LKP Securities, the level of ₹ 1,45,000 is an important support for MCX gold, while ₹ 1,55,000 remains a major resistance. Unless gold crosses this level, the market trend may remain weak.
Ajay Kedia of Kedia Advisory says that MCX Silver may get support around ₹ 2,24,000, while resistance may be seen near ₹ 2,38,500.
Experts believe that US-Iran tension, inflation figures and global economic situation will decide the direction of gold and silver prices in the coming days.
Also read-Investors withdrew crores of rupees from Gold ETF, is the gold rally over?
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