Gold, silver prices jump on MCX ahead of US CPI

Gold and silver are shiny metals that people buy to keep their money safe.

On Wednesday, 12 August, their prices went up by up to one percent in a marketplace called the MCX, where commodities like gold and silver are traded in rupees.

Prices rose because traders around the world felt hopeful and demand for gold and silver was healthy.

There is also worry in the air, though.

The United States and Iran disagree about a narrow waterway called the Strait of Hormuz, where big ships carrying oil travel.

Because of this conflict, oil prices went up to nearly $90 a barrel, and expensive oil can make other prices go up too.

Everyone is also waiting for new inflation numbers from the United States to see if prices are rising fast.

If inflation is high, the US Federal Reserve might raise interest rates, and higher rates make gold less attractive because gold does not pay interest.

So the next move in gold and silver prices depends on the new inflation data, which is due today.