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Gold and silver rise on MCX as oil falls and the dollar slips

MCX gold October futures gained 0.16% to ₹1,63,146 per 10 grams, while silver September futures rose 0.64% to ₹2,45,700 per kg in early trade, ahead of US PCE inflation data and a Fed Jackson Hole speech.

Reported · Written up by our desk · Precious Metals

Gold and silver prices edged higher on the MCX in early trading Wednesday, helped by a drop in crude oil and a weaker US dollar ahead of key US inflation data, LiveMint Markets reported. MCX gold October futures were up 0.16% at ₹1,63,146 per 10 grams around the morning session, while MCX silver September futures rose 0.64% to ₹2,45,700 per kg around 9:10 AM.

The move in bullion coincided with pressure on oil prices, with Brent crude futures down about 3% to near $86 per barrel. LiveMint Markets said the dollar index was below 99 as investors looked to potential developments around the Strait of Hormuz, after Iran said it resumed talks with Oman on managing the strategic waterway.

Still, uncertainty in the Middle East remained, with Iran warning that US sanctions announced Monday will not bring peace. LiveMint Markets also cited a China response to US actions tied to Beijing and Tehran, adding to the risk hedging backdrop for metals.

Attention is also on the Federal Reserve, with the US Personal Consumption Expenditures (PCE) price index for July due at 1230 GMT and Fed Chairman Kevin Warsh set to speak at the Jackson Hole symposium on Friday. According to comments cited by LiveMint Markets from Ravi Singh, lower energy prices and softer Treasury yields have eased inflation concerns and supported bullion, while ongoing demand for gold as a hedge continues to underpin the trend.

Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|WTI crude $82.40 ▲1.4%

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