Stories
Gold, Silver Prices Rise Amidst US Rate Hike Fears, Oil Volatility
- •Gold and silver prices increased in early Asian trade, but gains were limited by expectations of prolonged higher US interest rates.
- •COMEX gold rose 0.17% to $4,391.30 per ounce, while COMEX silver gained 0.58% to $66.80 an ounce.
- •Federal Reserve officials' comments, including St. Louis Fed President Alberto Musalem's remarks on potential further rate hikes, are closely watched by investors.
- •Crude oil prices and potential US-Iran talks at the UN General Assembly are also influencing market sentiment.
- •In India, gold futures declined, with MCX October gold falling 0.54% to ₹1.53 lakh per 10 grams, impacted by a stronger US dollar and rate hike concerns.
Key Questions Answered
COMEX gold rose 0.17% to $4,391.30 per ounce, while COMEX silver gained 0.58% to $66.80 an ounce in early Asian trade on Tuesday, September 22, as investors monitored the US interest rate outlook and comments from Federal Reserve officials.
In India, MCX October gold futures fell 0.54% to ₹1.53 lakh per 10 grams on Monday, September 21, pressured by a stronger US dollar and renewed concerns over further US interest rate hikes, while domestic buyers remained cautious.
Gold and silver do not generate interest income, making them vulnerable when higher-for-longer US interest rates make yield-bearing assets more attractive. Additionally, elevated crude oil prices add to inflationary pressures, which can prompt the Federal Reserve to keep rates higher and place further downward pressure on bullion.
