The precious metals have been on an upswing. Gold gained on softer dollar rates and apprehension about the US-Iran talks scheduled for later today in Geneva. Silver too rallied to 3-week highs. The investors are also likely to watch out for the US weekly jobless claims data due later today, for cues going forward.
Gold near 4-week highs
Gold is holding steady above the $5,200/oz level in the international market for the second straight session. Sentiment has been buoyed by a softer dollar and safe-haven demand fuelled by uncertainty surrounding U.S. tariff policy and US-Iran talks scheduled for later today.
Speaking on the gold’s trajectory going forward, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, “Markets weighed geopolitical tensions and uncertainties surrounding US trade policies. The buildup of US troops in the Middle East kept investors on edge ahead of nuclear talks in Geneva, while Washington stepped up pressure on Iran by sanctioning entities involved in oil and weapons exports. At the same time, the Trump administration moved to maintain its global tariff strategy, raising concerns among trading partners. On the monetary policy front, persistent inflation concerns pushed traders to delay expectations of the Federal Reserve’s next rate cut to September.”
Speaking on the trend in the local market, he expects that “MCX Gold April Futures is likely to trade around Rs 162,500/10 gm as trends in the world markets too are positive.”
Silver rallies to 3-week highs
Silver has also seen a rather strong session. In international markets, prices surged past the $88 per troy ounce levels. Some of the key factors impacting the price action include the upcoming talks between US and Iran in Geneva, dollar moves, tariff surprises and Fed policy uncertainty.
The markets are currently expect three 25-basis-point rate cuts from the Federal Reserve this year. Investors are also awaiting the weekly jobless claims data due later in the day for more cues on the Fed’s monetary policy path.