Global Bullion Prices Surge as US Inflation Data Supports Gold and Silver Rally
Bullion prices saw a marginal but steady surge in early trade on July 21, driven by global market sentiment. International spot gold climbed by 0.62 percent, reaching $4,040.60 per ounce. Meanwhile, silver also advanced, ticking up 1.51 percent to $57.93 per ounce during the morning trading session on Comex.Domestic Gold and Silver Futures Performance
The movement in Indian commodity markets reflected a mixed sentiment as futures contracts traded through the week. MCX gold futures for the August contract concluded their Monday (July 20) trade with a modest 0.35 percent increase, finishing at Rs 1,41,398 per 10 grams.In contrast, silver futures saw a slight decline in domestic markets. The September silver contract closed down by 0.11 percent, settling at Rs 2,18,150 per kilogram from its previous closing level.
Market Outlook and Fed Rate Hike Concerns
The immediate recovery in bullion prices was significantly underpinned by softer US inflation data released for June. This key data point initially boosted the overall sentiment across commodity markets.However, experts maintain a degree of caution regarding future movements. Investors are watchful as they anticipate potential inflationary pressure returning in the coming months due to elevated crude oil prices.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that these factors could prompt the Federal Reserve to consider another interest rate hike later this year. He specified that such a move might occur in September or December.
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