Gold and silver prices in India opened lower on Multi Commodity Exchange (MCX) on Tuesday, following a muted trend in global bullion prices, as investors await key details of the US-Iran peace deal.
MCX gold rate for August futures contracts opened lower at ₹1,52,891 per 10 grams as against its previous close of ₹1,52,916 level. MCX silver price for July futures contracts opened lower at ₹2,50,457 per kg as compared to its previous close of ₹2,51,458 level.
In the international market, gold prices were largely steady after rising to a more than one-week high in the previous session.
Spot gold price rose 0.2% to $4,315.87 per ounce, after rising as much as 3.6% on Monday. US gold futures for August delivery fell 0.3% to $4,337.10. Spot silver prices fell 1% to $69.29 per ounce.
A preliminary agreement to end the war in the Gulf has been signed by the US and Iran, US President Donald Trump said, though details have yet to be made public and both countries said a permanent truce is yet to be negotiated.
Meanwhile, the US dollar held near 10-day lows, supporting gold prices.
Markets now await the US Federal Reserve policy decision and remarks by its Chairman Kevin Warsh on Wednesday, with interest rates widely expected to remain unchanged.
According to the CME FedWatch tool, traders have scaled back expectations for a US Fed rate hike in December to 57% after the US-Iran peace deal, down from about 70% last week. Gold loses appeal in a high-interest-rate environment as it is a non-yielding asset.
Brokerage firm Citi has raised its 0-3 month gold price forecast by $500 to $4,500 per ounce.
