Gold and silver prices are holding steady in today’s trade on reports of US President Donald Trump willing to end the prolonged Iranian war. However, for March, the precious metals logged their worst monthly performance since October 2008. The commodity market in India are partially shut today.
The morning session on the MCX was closed on account of Mahavir Jayanti. The MCX evening session will resume at 5 pm.
Gold, silver rate today
In international markets, spot gold was trading above the $4,550/oz mark and touched a high of $4,610/oz in early Asian trade. Similar was the case with silver, which is holding above the crucial $70/oz mark, trading near the $72/oz level.
The precious metals stabilised after WSJ reported that Trump told his aides that he is willing to end the US military campaign against Iran even if the crucial waterway passage – the Strait of Hormuz – remains largely unclosed.
Gold and silver log worst monthly performance
While gold and silver prices are holding steady for now, March proved to be a heavily volatile month for these assets. This month, gold prices declined by nearly 13%, marking one of its worst months since October 2008.
Silver prices witnessed even steeper declines, falling by over 20% in March, as the white metal posted one of its worst-ever monthly performances in over 14 years.
US Fed’s hawkish stance a worry
The soaring oil prices have pushed central banks globally to adopt a more hawkish stance. US Federal Reserve Chair Jerome Powell on Monday said that the central bank could wait to see the implications of the Iran war on the economy and inflation, allowing policymakers to assess the impact of high oil prices.
Markets currently price in no rate cuts by the Fed for this year. Prior to the war, investors were weighing in at least two rate cuts by the central bank. Low interest rates increase the appeal of bullion.
MCX gold and silver flat
On MCX, gold and silver futures ended flat on Monday. The April delivery contract for gold was last quoted at Rs 1,45,051 per 10 grams, while the May delivery contract of silver stood at Rs 2,29,033 per kg.
These global cues will reflect on MCX prices in the exchange’s evening session today, as the commodity exchange observed partial closure today on the occasion of Shri Mahavir Jayanti.