Gold and Silver Markets Experience Volatility as US Dollar Strengthens and Rate Hike Expectations Ease
Market Volatility: Gold and Silver Prices Fluctuate Amid US Fed Rate Hike Concerns
On Monday, 6 July, the gold and silver prices on the Multi Commodity Exchange (MCX) witnessed significant volatility in early trade, as traders struggled to make sense of the easing concerns over US Federal Reserve rate hikes following softer-than-expected jobs data.
MCX Gold and Silver Prices
At 9:10 am, MCX gold August futures were trading 0.03% higher at ₹1,47,418 per 10 grams, while MCX silver September futures were 0.02% up at ₹2,37,447 per kg. However, these gains were quickly erased, and by 9:25 am, MCX gold August contract was 0.12% down at ₹1,47,201 per 10 grams, while MCX silver September futures were 0.46% down at ₹2,36,317 per kg.
Global Market Trends
The dollar index climbed 0.10% to 100.98, while crude oil benchmark Brent crude eased by half a percent to trade below $72 per barrel. In contrast, US gold prices were near a two-week high, as softer-than-expected U.S. jobs data last week dimmed expectations of aggressive Federal Reserve interest rate hikes this year.
