Gold and silver prices in India gained in Monday morning trade amid US-Iran tensions and tracking movements in crude oil prices and expectations around US interest rates at the international markets.
The international spot gold increased 0.4 per cent to 4,182.30 dollars an ounce and the spot silver 1.3 per cent to 57.73 dollars an ounce, Reuters reported on Monday. Gold futures for December delivery in the US increased 0.5 per cent to 4,203.50 dollars.
The rally followed lower oil prices which helped to take some inflation worries out of the market and investors weighing up the US monetary policy outlook. Gold tends to perform well in times of geopolitical jitters but increased interest rate expectations can act as a headwind as the metal does not pay interest.
Indian bullion also moved higher. Rates differed by city and jewellers while the final consumer price depends on purity, local taxes and jewellers’ making charges, market reports said.
Traders are awaiting US economic data to be released and follow the movements of energy prices and tensions in the Middle East for signs of the Federal Reserve’s next interest rate decision.
Pricing considerations: Additional increases in US-Iran jitters may drive precious metals prices higher, but directional moves in the dollar, bond yields and oil prices could drive prices in one direction or another.
