Gold and silver prices climbed in early trade on the MCX on Monday, 20 July, largely due to value buying after the US dollar eased slightly, even as crude oil prices remained elevated, fuelling expectations of rate hikes by the US Federal Reserve.
MCX gold August futures traded 0.30% higher at ₹1,41,322 per 10 grams, while MCX silver September contracts were 1.38% up at ₹2,19,400 per kg around 9:15 am.
Gold prices in the US, however, dropped as escalating Middle East tensions drove Brent crude above $90 per barrel, bolstering inflation concerns and expectations of U.S. Federal Reserve rate hikes this year.
The US-Iran war continues. Media reports suggested the US launched a ninth consecutive night of airstrikes on Iran early Monday.
Meanwhile, US Secretary of State Marco Rubio on Sunday (local time) said that Washington remains open to a diplomatic solution with Tehran.
Meanwhile, the dollar index eased to 100.71 after rising to 100.87, making gold slightly cheaper for buyers in overseas currencies.
(This is a developing story. Please check back for fresh updates.)
