Gold and silver prices rise on MCX on a weaker dollar; US-Iran stalled talks cap gains | Stock Market News

Gold and silver prices today: Rates of gold and silver climbed by up to 1% in early deals on the MCX on Monday, 17 August, amid a decline in the US dollar and weakening expectations for a US Fed interest rate hike in September.

However, stalled US-Iran talks and uncertainty over the full opening of the Strait of Hormuz kept inflation fears strong, capping gains for the yellow metal.

Brent crude, the international crude oil benchmark, rose by 1% to trade near $90 per barrel, heightening worries that inflation may remain above the Fed's 2% target for longer, prompting the central bank to start hiking rates by the end of this year.

MCX gold October futures were 0.37% up at ₹1,55,079 per 10 grams, while MCX silver September futures were 0.74% up at ₹2,37,678 per kg around 9:15 AM.

As per reports, Iranian Deputy Foreign Minister Kazem Gharibabadi has repeated that, "The Strait of Hormuz has been Iranian, is Iranian, and will remain Iranian." He added that "this strait will only be closed and opened under Iran's command."

US Consumer Price Index (CPI) climbed 0.1% month-on-month in July after dropping 0.4% in June. Year-on-year, the CPI increased 3.4% after rising 3.5% in June.

The Personal Consumption Expenditures (PCE) price ​index, the Fed's preferred inflation gauge, for July is due on 26 August. PCE inflation has been above 2% since early 2021.

"Last week's inflation data showed a decline while consumer sentiment and retail sales weakened. Markets now see roughly a 33% chance of a Fed rate hike in September, down from nearly 50% before the data. Investors are now awaiting the FOMC’s latest meeting minutes and Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium for further cues on interest rate trajectory," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.

As per Ravi Singh, Chief Research Officer at Master Capital Services, a sustained breakout above ₹1,54,500 could strengthen the bullish structure and trigger further upside towards ₹1,58,000. On the downside, ₹1,51,000 remains the key support, and as long as prices sustain above this level, the buy-on-dips strategy remains intact.

Trivedi said MCX gold October futures may trade with a positive bias, with ₹1,55,000 as the next resistance for the intraday. On the flip side, ₹154,000 is support for the session.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,400 and $4,364, while resistance is at $4,470 and $4,500 per troy ounce, and silver has support at $63.40 and $62.60, while resistance is at $65.80 and $67 per troy ounce in today’s session.

MCX gold, as per Jain, has support at ₹1,53,650 and ₹1,52,800, and resistance is at ₹1,55,500 and ₹1,56,100, while silver has support at ₹2,34,000 and ₹2,31,600 and resistance at ₹2,38,000 and ₹2,41,000.

"We suggest buying gold on dips around ₹1,53,000 and ₹1,52,500 with a stop loss below ₹1,51,800 for the target of ₹1,55,500 and ₹1,56,000, and buying silver around ₹2,33,300 and ₹2,32,000 with a stop loss below ₹2,29,800 for the target of ₹2,38,000 and ₹2,40,000," said Jain.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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