New Delhi: Gold and silver prices fell on Tuesday, following a bearish trend in international markets amid uncertainty over interest rate cuts by the US Federal Reserve.
In futures trading on Multi Commodity Exchange (MCX), gold for August delivery was trading down Rs 122 or 0.17 per cent at Rs 71,532 per 10 gram. During the day, the precious metal hit a low of Rs 71,432 per 10 grams.
Silver prices also declined in the spot and futures markets.
Silver contracts for September delivery declined by Rs 81 to Rs 89,669 per kg on the MCX.
Gold was trading at Rs 71,692 per 10 gram in Mumbai spot markets on Tuesday, while silver was trading at Rs 88,015 per kg.
The precious metal was quoted almost unchanged at Rs 74,250 per 10 gram in local markets in the national capital, traders said. Silver is trading at Rs 90,000 per kg.
“Gold prices continue to trade in a tight range keeping market participants nervous as along with ambiguity regarding rate cut expectations, the market is also taking cues from US economic data.
"Limited updates on geopolitical tensions weighed on sentiment; however, Fed officials in most of their appearances promoted a cautious approach and a delay in rate cuts this year," said Manav Modi, senior analyst at Motilal Oswal Financial Services Ltd. Commodity Research.
Safe haven demand has surged in recent weeks amid a challenging political backdrop and upcoming elections in the UK and US are raising concerns about policy changes, which will dampen prices, Modi said.
In foreign markets, both gold and silver were trading lower at $2,329.60 per ounce and $29.54 per ounce, respectively.
Market participants will be watching US Federal Reserve Chairman Jerome Powell's speech on Tuesday. This week's focus will be on US nonfarm payrolls and factory orders data and also the minutes of the Federal Open Market Committee (FOMC) meeting, he added.
According to Praveen Singh, associate vice president of fundamental currencies and commodities at Sharekhan at BNP Paribas, gold is expected to trade with a slight positive bias ahead of key US data such as ADP employment, ISM services, non-farm payrolls, etc.
These data reports could provide an overview of interest rates and impact gold prices.
According to market experts, gold is stuck in a range as the US Federal Reserve remains reluctant to commit to a date when it will begin cutting interest rates.
Additionally, traders betting on when the Federal Reserve might cut interest rates are perhaps more optimistic and continue to point to a high probability that the Federal Reserve will cut interest rates at the September meeting.
In futures trading on Multi Commodity Exchange (MCX), gold for August delivery was trading down Rs 122 or 0.17 per cent at Rs 71,532 per 10 gram. During the day, the precious metal hit a low of Rs 71,432 per 10 grams.
Silver prices also declined in the spot and futures markets.
Silver contracts for September delivery declined by Rs 81 to Rs 89,669 per kg on the MCX.
Gold was trading at Rs 71,692 per 10 gram in Mumbai spot markets on Tuesday, while silver was trading at Rs 88,015 per kg.
The precious metal was quoted almost unchanged at Rs 74,250 per 10 gram in local markets in the national capital, traders said. Silver is trading at Rs 90,000 per kg.
“Gold prices continue to trade in a tight range keeping market participants nervous as along with ambiguity regarding rate cut expectations, the market is also taking cues from US economic data.
"Limited updates on geopolitical tensions weighed on sentiment; however, Fed officials in most of their appearances promoted a cautious approach and a delay in rate cuts this year," said Manav Modi, senior analyst at Motilal Oswal Financial Services Ltd. Commodity Research.
Safe haven demand has surged in recent weeks amid a challenging political backdrop and upcoming elections in the UK and US are raising concerns about policy changes, which will dampen prices, Modi said.
In foreign markets, both gold and silver were trading lower at $2,329.60 per ounce and $29.54 per ounce, respectively.
Market participants will be watching US Federal Reserve Chairman Jerome Powell's speech on Tuesday. This week's focus will be on US nonfarm payrolls and factory orders data and also the minutes of the Federal Open Market Committee (FOMC) meeting, he added.
According to Praveen Singh, associate vice president of fundamental currencies and commodities at Sharekhan at BNP Paribas, gold is expected to trade with a slight positive bias ahead of key US data such as ADP employment, ISM services, non-farm payrolls, etc.
These data reports could provide an overview of interest rates and impact gold prices.
According to market experts, gold is stuck in a range as the US Federal Reserve remains reluctant to commit to a date when it will begin cutting interest rates.
Additionally, traders betting on when the Federal Reserve might cut interest rates are perhaps more optimistic and continue to point to a high probability that the Federal Reserve will cut interest rates at the September meeting.
