Gold and silver prices surged more than 1% each on the MCX in morning deals on Tuesday, 11 August, mirroring positive global sentiment amid a decline in the US dollar.
MCX gold October futures was 1.32% up at ₹1,55,124 per 10 grams, while MCX silver September futures was 1.07% up at ₹2,39,400 per kg around 9:10 AM.
The dollar index eased, making greenback-backed bullion cheaper for buyers in other currencies. On the other hand, crude oil prices traded near $88 per barrel due to continued uncertainty over a potential US-Iran deal that could facilitate the reopening of the strategically vital Strait of Hormuz.
Iran has said that the Strait of Hormuz will remain closed until the end of US actions and the payment of compensation for damages.
Meanwhile, US President Donald Trump has demanded compensation from Iran for “all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts.”
Meanwhile, the focus is on the US consumer price inflation due on Wednesday and producer price data on Thursday for further cues on the US Fed’s policy trajectory.
“International gold extended its rally to a more than two-month high, with strong buying momentum outweighing pressure from firmer U.S. yields, the dollar and energy prices. The rebound has been supported by short covering, FOMO buying and renewed safe-haven demand following the recent U.S. jobs data,” said Ravi Singh, Chief Research Officer at Master Capital Services.
“Investors now await U.S. CPI and PPI data for fresh clues on the Federal Reserve’s rate path, with markets pricing a 52% probability of a September hike. Chinese demand is also supporting bullion, while continued developments around the Strait of Hormuz remain an important geopolitical cue,” said Singh.
Gold prices outlook
Singh highlighted that gold prices are now approaching the immediate resistance zone near ₹1,54,500, and a sustained breakout above this level could trigger the next leg of the rally towards ₹1,58,000.
“On the downside, ₹1,51,000 remains the immediate support, while ₹1,47,600 is the major support zone. As long as prices sustain above these levels, the overall trend remains positive, and the strategy continues to be buy on dips,” said Singh.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said the key focus this week will be on US CPI data, which will be crucial for shaping the Federal Reserve’s policy outlook and expectations around the future interest-rate path.
“A softer inflation reading could support gold, while a higher-than-expected CPI may trigger some profit booking through a stronger dollar and higher yields. Technically, MCX gold is expected to trade in the ₹1,50,000–1,54,000 range in the near term,” said Trivedi.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold October futures to rise further to ₹1,53,700 per 10 grams, with support around ₹1,52,500.
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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.
