Gold steady, silver weakens in early trade as softer oil cools rate worries

Gold traded largely steady while silver edged lower in early trade on Monday, as softer crude oil prices tempered expectations of further interest rate tightening by the US Federal Reserve and lent support to sentiment in precious metals.

On the Multi Commodity Exchange, gold futures for August delivery opened at Rs 1,47,135 per 10 grams, down Rs 243 from the previous close of Rs 1,47,378. By around 11 am, the contract was trading at Rs 1,47,177 per 10 grams, lower by Rs 200. During the session, it touched an intraday low of Rs 1,47,032 and a high of Rs 1,47,509.

Silver futures for September delivery opened at Rs 2,36,393 per kg, down Rs 1,017 from the previous close of Rs 2,37,410. By late morning, the contract was trading at Rs 2,36,198 per kg, down Rs 1,212. It hit an intraday low of Rs 2,36,001 and a high of Rs 2,37,676.

In the international market, however, both precious metals traded higher. COMEX gold rose 1 per cent to USD 4,173.24 an ounce, while COMEX silver gained 2 per cent to USD 62.29 an ounce.

Commodity market analysts said gold continued to hover near a two-week high and remained above its key short-term moving averages, suggesting that the broader undertone stayed firm despite some profit-taking. They said immediate resistance for gold was seen around Rs 1,48,750 per 10 grams, with a break above that level likely to strengthen the upward move.

Silver, despite opening on a weaker note, was also trading above its short-term moving average and could test the next resistance level of Rs 2,45,184 per kg, analysts said.

Crude oil prices remained under pressure after OPEC+ agreed to raise output targets for August, easing supply concerns. Brent crude was down 0.76 per cent at USD 71.55 a barrel, while US West Texas Intermediate crude fell nearly 1 per cent to below USD 69 a barrel.

The softer oil trend has helped cool inflation and rate concerns in global markets, a factor that traders said was supporting the broader outlook for precious metals even as domestic prices saw some early weakness.

With IANS inputs