Gold prices in India held near a two-month high on Wednesday, while silver climbed Rs 2,000 per kg in New Delhi, as traders awaited US inflation data for clues on the Federal Reserve's next interest-rate move, according to The Times of India live blog. Spot gold gained 0.3% to $4,377.79 per ounce by 0055 GMT, while US gold futures for December delivery were little changed at $4,438, the blog reported.
Domestic Bullion Prices Extend Winning Streak
In the Indian market, gold has risen for six consecutive sessions, according to the live blog. The price of 99.9% purity gold rose to Rs 1,57,200 per 10 grams on Tuesday from Rs 1,47,400 on August 3, a gain of Rs 9,800, or 6.65%, over the past six trading sessions, as per the All India Sarafa Association. The rally has taken domestic gold to a two-month high.
Silver prices in New Delhi rose Rs 2,000 to Rs 2,42,000 per kg on Tuesday, reaching the highest level in more than two months, according to the All India Sarafa Association.
| Commodity (New Delhi) | Price on Tuesday | Change | Period |
|---|---|---|---|
| Gold (99.9% purity) | Rs 1,57,200 per 10 grams | +Rs 9,800 (+6.65%) | Six trading sessions |
| Silver | Rs 2,42,000 per kg | +Rs 2,000 | Tuesday's trading |
Markets currently price a 48% probability of a rate increase in September, according to the live blog.
Fed Rate Expectations And US Inflation Data
Traders have reduced their expectations of a September Federal Reserve rate hike following weaker-than-expected US jobs data, The Times of India reported. The shift in expectations has provided some support to gold, although investors remain cautious ahead of the latest US inflation figures.
The US Consumer Price Index data due later on Wednesday is expected to be the key event for gold markets, as traders look for clues about the Federal Reserve's next interest-rate move, the blog said. A softer inflation reading could reinforce expectations for easier monetary policy, potentially supporting gold. However, higher energy prices can fuel inflation and encourage central banks to keep interest rates elevated for longer, which could weigh on gold, which does not offer interest income.
Geopolitical Risks: Strait Of Hormuz And Oil Prices
Gold had climbed to its highest level since June 5 in the previous session before giving up some gains, according to the report. Spot prices touched $4,435 an ounce before retreating as crude oil prices advanced amid uncertainty over the Strait of Hormuz. Rising oil prices are adding another layer of uncertainty for bullion markets as concerns over the US-Iran conflict and shipping disruptions persist. Investors are therefore closely watching developments around the Strait of Hormuz alongside US economic data.
Technical Levels And Market Positioning
Bullion climbed to its highest level since June 5 on Tuesday before encountering technical resistance around the 100-day moving average near $4,387, the live blog noted. This technical barrier, combined with the advance in crude oil and the upcoming inflation print, has kept spot gold in a tight range, with prices holding around $4,377.79 per ounce.
Investment And Industrial Demand For Silver
Silver has been supported by both investment sentiment and industrial demand, while global precious metals markets remain sensitive to interest-rate expectations, according to The Times of India. In the Indian market, gold's six-session winning streak reflects stronger safe-haven and investment demand, the blog reported. The live blog identified the upcoming US Consumer Price Index data as the key event for gold markets, with traders also monitoring Strait of Hormuz developments and the Federal Reserve's September rate decision.
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