New Delhi—Gold and silver prices moved higher Monday as a slight decline in the U.S. dollar encouraged value buying, although rising crude oil prices and expectations of another Federal Reserve interest rate increase limited gains.
On the Multi Commodity Exchange, gold futures for August delivery rose as much as 743 rupees, or 0.52%, to an intraday high of 141,649 rupees per 10 grams.
Gold was later trading at 141,254 rupees, up 348 rupees, or 0.25%. It touched a session low of 141,081 rupees.
Silver futures for September delivery climbed as much as 4,005 rupees, or 1.85%, to an intraday high of 220,408 rupees per kilogram.
Silver was later trading at 218,225 rupees, up 1,822 rupees, or 0.84%, after falling as low as 217,804 rupees earlier in the session.
International precious metals prices were mixed. COMEX gold declined 0.24% to $4,009.30 an ounce, while COMEX silver gained 0.88% to $56.82 an ounce.
Commodity analysts said the near-term outlook for both metals remained cautiously positive despite continuing uncertainty in global markets.
MCX gold is expected to remain supported above 141,000 rupees, while a sustained move above 142,000 rupees could strengthen the recovery. Silver could maintain its upward momentum if it holds above 220,000 rupees.
The weaker dollar supported bullion by making precious metals less expensive for buyers using other currencies.
However, crude oil prices above $90 a barrel, driven by escalating tensions in the Middle East, renewed inflation concerns and reinforced expectations that the Federal Reserve could raise interest rates again this year. (Source: IANS)
