Gold, silver futures trade higher as weaker US dollar supports demand

Representational Image. File pic.

Gold and silver prices traded higher on Monday, supported by value buying after the US dollar eased slightly, although elevated crude oil prices kept investors cautious amid expectations of another US Federal Reserve rate hike.

On the Multi Commodity Exchange (MCX), gold futures for August delivery rose as much as 0.52 per cent or Rs 743 to hit an intraday high of Rs 1,41,649 per 10 grams at 11:45 am.

At the last count, the yellow metal was trading at Rs 1,41,254, up Rs 348 or 0.25 per cent. During the session so far, it touched an intraday low of Rs 1,41,081.

Silver futures for September delivery climbed as much as 1.85 per cent or Rs 4,005 to an intraday high of Rs 2,20,408 per kg.

The white metal was later trading at Rs 2,18,225, up Rs 1,822 or 0.84 per cent. It hit an intraday low of Rs 2,17,804 during the session.

In the international market, precious metals traded mixed. COMEX gold slipped 0.24 per cent to $4,009.30 per ounce, while COMEX silver gained 0.88 per cent to $56.82 per ounce.

According to the commodity market experts, the near-term outlook for both gold and silver remains cautiously positive despite persistent uncertainty in global markets.

They said MCX gold is likely to remain supported above the Rs 1.41 lakh level, while a sustained move beyond Rs 1.42 lakh could strengthen the recovery.

Silver is also expected to retain its positive momentum if it manages to hold above the Rs 2.20 lakh mark.

Analysts said the softer US dollar offered support to bullion prices by making gold cheaper for holders of other currencies.

However, the rally in crude oil prices above $90 per barrel, driven by escalating tensions in the Middle East, has reinforced inflation concerns and expectations of another US Federal Reserve interest rate hike this year.

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