3 weeks ago
Gold, silver volatile amid Middle East confusion, stronger US dollar
Gold and silver are precious metals that people invest in.
On Monday morning, their prices in India moved up and down a little.
Gold stayed almost the same, while silver got a bit more expensive.
Prices change because of things happening around the world.
Right now, there is tension between the United States and Iran over a very important sea route called the Strait of Hormuz.
Many ships carry oil through this waterway, and everyone is worried about whether it will reopen.
When people worry about big problems, they often buy gold, which can push its price up.
A stronger US dollar also makes gold cost more for buyers using other money.
This week, people are waiting for new US reports about prices and jobs.
Analysts do not agree about what will happen next—some think gold will keep rising, while others think it might fall.
MCX gold October futures were flat at ₹1,51,870 per 10 grams, while MCX silver September futures rose 0.90% to ₹2,33,532 per kg in early deals on Monday, 10 August.
The US dollar index inched up 0.20%, making bullion costlier for non-dollar buyers, while crude oil jumped about 1% above $84 per barrel on uncertainty over reopening the Strait of Hormuz.
Iran said negotiations with Oman on new shipping routes were nearing completion, but reiterated that the US must meet additional conditions before the waterway is reopened.
A Yemeni military spokesperson said on 9 August that Iran-backed Houthis resumed attacks on the Red Sea port city of Mocha, while US President Donald Trump said Washington is taking a 'low-key' approach and not planning a fresh military offensive.
Markets await US CPI (Wednesday) and PPI (Thursday) for cues on the US Federal Reserve's rate path, after Bureau of Labor Statistics data showed nonfarm payrolls fell 23,000 last month, while analysts diverged on MCX gold's next move.
- Who
- Traders and analysts tracking gold and silver on India's Multi Commodity Exchange (MCX), including Ravi Singh of Master Capital Services and Jigar Trivedi of IndusInd Securities; US President Donald Trump also commented on policy toward Iran.
- What
- Gold and silver prices were volatile, with MCX gold October futures flat and silver September futures higher, as markets weighed Middle East tensions, a firmer US dollar and higher crude oil.
- Where
- Indian commodity markets (MCX), with attention on the Strait of Hormuz and Yemen's Red Sea port city of Mocha, as well as upcoming US economic data.
- When
- Monday, 10 August, in early deals around 9:10 AM; the reported resumption of Houthi attacks on Mocha was on 9 August.
- Why
- Mixed signals from the Middle East over reopening the Strait of Hormuz, a firmer dollar, higher oil prices and expectations about US Federal Reserve interest rate moves kept bullion prices volatile.
Bullish signals
Bearish signals
Near-term MCX gold direction
Bullish signals
Ravi Singh, Chief Research Officer at Master Capital Services, sees strong bullish momentum with MCX gold holding above ₹1,46,500 support, targeting ₹1,54,000 and then ₹1,58,000, and advises a 'buy on dips' strategy.
Bearish signals
Jigar Trivedi of IndusInd Securities expects MCX gold to decline amid profit-booking in global markets, with ₹1,51,000 support and ₹1,52,500 resistance for Monday.
Middle East risk picture
Bullish signals
Signs of easing: Iran says talks with Oman on new shipping routes are nearing completion, and US President Donald Trump says Washington is taking a 'low-key' approach with no fresh military offensive planned.
Bearish signals
Signs of continued tension: the Strait of Hormuz remains closed until the US meets additional conditions, and Iran-backed Houthis resumed attacks on the Red Sea port city of Mocha, supporting crude oil above $84 per barrel.
Key facts
- MCX gold futures (October)
- ₹1,51,870 per 10 grams (flat)
- MCX silver futures (September)
- ₹2,33,532 per kg (up 0.90%)
- Dollar index
- Up 0.20%
- Crude oil prices
- Up about 1%, above $84 per barrel
- Gold levels (Ravi Singh, Master Capital Services)
- Support ₹1,46,500; resistance ₹1,54,000, then ₹1,58,000
- Gold levels (Jigar Trivedi, IndusInd Securities)
- Support ₹1,51,000; resistance ₹1,52,500
- US nonfarm payrolls
- Down 23,000 last month; May-June figures revised down by a combined 1,03,000
- US data due this week
- CPI on Wednesday; PPI on Thursday
Quotes
Donald Trump
U.S. President
“"As long as prices hold above this level, the overall trend remains positive, and the strategy continues to be buy on dips."”
livemint.com
“"Washington is adopting a low‑key approach towards Iran and is not currently looking to launch a fresh military offensive."”
livemint.com
Sources
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