Gold and silver prices today: Rates of gold and silver dropped in the morning trade on Wednesday, 19 August, on MCX as elevated crude oil prices, amid stalled US-Iran talks, fuelled US Fed interest rate hike bets.
However, a decline in the dollar index capped losses for the yellow metal.
The dollar index eased to 99.57 from 99.66 in the earlier session, making the greenback-backed yellow metal slightly cheaper for buyers in overseas currencies.
MCX gold October futures were 0.13% down at ₹1,54,055 per 10 grams, while MCX silver September futures were 1.21% down at ₹2,29,600 per kg around 9:35 AM.
Oil price benchmark Brent Crude traded near $92 per barrel on Wednesday morning, rising for a fourth consecutive session, after US President Donald Trump said on Tuesday that no negotiations were underway with Iran and maintained that the Strait of Hormuz remained open, contradicting Tehran’s claim that the strategically important waterway was still closed to shipping.
Meanwhile, Iran has slammed the US President for claiming the Strait of Hormuz as “New US Territory”.
“Just as Trump correctly wrote the name of the eternal Persian Gulf, soon his delusion regarding the Strait of Hormuz will either be corrected, or we will correct the delusions of this deluded man,” Iranian Deputy Foreign Minister Kazem Gharibabadi said in a post on X.
Energy prices have been at elevated levels for most of the year due to the US-Iran war, heightening inflation concerns and bolstering the case for interest rate hikes to rein it in.
Higher interest rates are negative for gold prices as the yellow metal is a non-yielding asset.
The minutes of the US Federal Reserve’s July policy meeting are due today. The Fed kept rates unchanged at its last policy meeting, but 3 of the 12 members of the Federal Open Market Committee (FOMC) voted for a 25-basis-point hike, underscoring growing discomfort among policymakers over rising inflation.
According to Reuters, the CME FedWatch Tool indicates markets are currently pricing in a 65% probability that the Fed will keep rates unchanged and a 35% chance of a rate hike in September.
The US Fed’s next policy meeting is on September 15-16. Fed’s preferred inflation gauge, Personal Consumption Expenditures (PCE), will offer cues about the trajectory of the US Fed’s monetary policy.
The July PCE price index is due on 26 August. PCE inflation has been above 2% since early 2021.
Gold and silver prices: Key levels to watch
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile amid fluctuations in crude oil prices, the dollar index, and geopolitical tensions.
He said MCX gold has support at ₹1,53,100 and ₹1,52,200, and resistance at ₹1,55,000 and ₹1,56,100, while silver has support at ₹2,30,000 and ₹2,26,600, and resistance at ₹ 2,23,500 and ₹2,37,700.
“We suggest avoiding fresh buying in gold and silver in today’s session ahead of the FOMC meeting minutes,” said Jain.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, gold may remain volatile, with ₹1,54,000 as support and ₹1,56,500 as resistance. A decisive break of either level could trigger a stronger move depending on fresh geopolitical updates.
Ravi Singh, Chief Research Officer at Master Capital Services, said as long as MCX gold prices sustain above ₹1,51,000, the buy-on-dips strategy remains intact. A decisive breakout above the trendline could revive momentum and open the way towards ₹1,58,000, said Singh.
“Investors are now awaiting the Federal Reserve’s July meeting minutes for clues on the interest-rate outlook, followed by Fed Chair Kevin Warsh’s remarks at Jackson Hole. Meanwhile, continued Middle East tensions and uncertainty around the Strait of Hormuz remain supportive safe-haven factors, keeping the broader outlook constructive,” said Singh.
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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.
