Silver Dips 1.30 Pc, Gold Eases Marginally Over Stronger Dollar

(MENAFN- IANS) Mumbai, March 9 (IANS) Gold and silver prices eased on Monday amid a firmer US dollar and higher inflation expectations, trimming hopes of US Fed rate cuts in the near term.

MCX gold April futures lost 0.16 per cent to Rs 1,61,380 per 10 grams around 11.10 am on an intraday basis. Meanwhile, MCX silver May futures declined 1.30 per cent to Rs 2,64,799 per kg.

Earlier in the day, gold futures had dipped 1.1 per cent, while silver futures had declined 1.4 per cent, before a strong rebound by precious metals.

The US dollar strengthened to cross its three‐month high touching 99.34 up 0.36 per cent on an intraday basis, making dollar‐priced bullion costlier for holders of other currencies.

Analysts said that US Treasury yields surging with the 10‐year papers hitting a one‐month high, increased the opportunity cost of holding non‐yielding metals.

Meanwhile crude oil surged around 27 per cent to $116 per barrel marking the first time since 2022 when both benchmarks crossed the $100 mark. The spike followed escalating hostilities in the Middle East amid supply disruptions at the Strait of Hormuz.

This raised inflation fears, leading to traders widely expecting the US Federal Reserve to hold interest rates steady at the conclusion of its two-day policy meeting on March 18.

The probability that the central bank will keep rates unchanged in June rose to over 51 per cent, up from below 43 per cent last week.

Gold has support at Rs 1,48,000 while resistance at Rs 1,53,000, an analyst said.

In COMEX Gold, strong buying interest is visible in the $5,000 support band, while a sustained breakout above $5,400–$5,600 could open the path toward fresh record highs, he added.

The medium to long-term outlook of silver also remains constructive amid favourable global cues from geopolitical developments, even with ongoing volatility, a market participant said.

-IANS

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