New Delhi, Aug 26: Gold and silver prices moved higher on Wednesday as softer crude oil prices and lower bond yields provided fresh support to precious metals. Investors, meanwhile, are keeping a close watch on upcoming US inflation data for clues about the Federal Reserve’s interest-rate outlook.
Gold remained supported after touching a more than three-month high in the previous session. Spot gold was trading near $4,626.79 an ounce, while silver also edged higher in global markets.
The positive trend was also visible in India, where gold and silver attracted buying interest in early trading on the Multi Commodity Exchange (MCX). The recent decline in crude oil prices has helped ease concerns about energy-led inflation, offering some relief to the bullion market.
Lower US Treasury yields have provided another source of support. Since gold does not pay interest, falling bond yields can make the precious metal relatively more attractive to investors. The decline in yields has also reflected reduced concerns that higher energy prices could add significantly to inflation.
Attention is now turning towards the upcoming US Personal Consumption Expenditures (PCE) price index, one of the key inflation indicators watched by the Federal Reserve. The data could influence expectations around future interest-rate decisions and trigger fresh moves in the US dollar, bond yields and precious metals.
Geopolitical uncertainty is also keeping gold and silver on investors’ radar. Developments in the Middle East, including tensions involving Iran and the Strait of Hormuz, remain important factors for global markets and safe-haven demand.
Despite the recent gains, traders are approaching the market cautiously. Precious metals can respond quickly to changes in the US dollar, interest rates, inflation expectations and broader investor sentiment.
For Indian buyers and investors, movements in international bullion prices, the rupee-dollar exchange rate and domestic demand will remain key factors in determining prices. With gold trading close to recent highs and silver maintaining its upward momentum, market participants are likely to closely follow global economic data and central-bank signals in the days ahead.
