Gold, silver extend losses as Fed rate concerns weigh on sentiment

New Delhi: Gold and silver prices continued to face selling pressure on Tuesday as investors and traders remained cautious over developments in West Asia and the US interest rate outlook.

On the Multi Commodity Exchange (MCX), gold futures (August) declined as much as 1.37 per cent or Rs 1,952, to hit an intraday low of Rs 1,40,450 per 10 grams at around 11:50 am.

At the last count, the yellow metal was trading at Rs 1,41,124, down over Rs 1,278, or around 1 per cent. It touched an intraday high of Rs 1,41,501, down Rs 900 or 0.63 per cent.

Meanwhile, silver futures (September) also traded lower, falling over 1 per cent or Rs 2,387 to an intraday low of Rs 2,20,247 per kg.

The white metal was trading at Rs 2,21,715 per kg, down over Rs 900, or 0.41 per cent, after touching an intraday high of Rs 2,22,293, a decline of Rs 341, or 0.15 per cent.

According to market experts, gold prices remained under pressure as investors continued to assess developments in West Asia and the US Federal Reserve’s interest rate trajectory.

They said markets are pricing in three rate hikes by the US central bank this year, with the first likely in September, while investors are also awaiting the US monthly employment report for fresh policy cues.

For silver, analysts said the near-term bias remains cautious after the metal failed to hold above the Rs 2,22,500 level.

In the international market, COMEX gold was trading below the $4,000-an-ounce mark, while COMEX silver gained more than 1 per cent to trade at $59.11.

International benchmark Brent crude fell more than 1 per cent to $73.08 per barrel. Similarly, US West Texas Intermediate (WTI) crude declined over 1 per cent to trade below the $70-a-barrel mark.

IANS