Gold and silver took a hit on Monday as investors pulled back on bets of an early interest rate cut by the US Federal Reserve. Worries over the worsening situation in West Asia added to the caution, keeping buyers on the sidelines.
On the Multi Commodity Exchange, gold futures for the April 2 contract fell over 1 per cent — down Rs 1,811 — to trade at Rs 1,56,655 per 10 grams around 10 in the morning. Silver had a rougher session, with May 5 futures dropping nearly 2 per cent or Rs 5,068 to Rs 2,54,367 per kg.
The weakness was not limited to Indian markets. Globally, gold slipped 0.66 per cent to around USD 5,028 per ounce, while silver shed 0.79 per cent to trade near USD 80.70 per ounce.
Analysts said the direction of gold prices in the near term will depend heavily on what comes out of the Fed’s upcoming policy meeting. Crude oil hovering above USD 100 per barrel has strengthened the dollar further, which typically works against gold.
The rupee too opened on the back foot, falling 13 paise to 92.43 against the US dollar in early trade. At the interbank forex market, the local unit started at 92.44 and stayed pinned near its weakest intraday level. The US Dollar Index eased slightly by 0.20 per cent but held firmly above the 100 mark, continuing to weigh on bullion.
On the geopolitical front, the Iran-Israel conflict showed no signs of cooling, keeping investor nerves on edge.
Equity markets were not spared either. The BSE Sensex opened 148 points lower at 74,415, while the Nifty 50 began the session nearly flat at 23,116, up just 35 points from Friday’s close, as traders kept a close watch on developments in the Middle East standoff involving Iran, Israel, and the United States.
Bureau Report
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