On COMEX, December gold futures were at $4,332.40 an ounce, up $14, or 0.32%, from the previous close. The contract touched an intraday high of $4,338 an ounce and a low of $4,319 an ounce.
COMEX silver futures, meanwhile, were at $64.67 an ounce, down $0.294, or 0.45%. Silver had touched a high of $65.005 an ounce and a low of $64.435 an ounce.
The moves in precious metals come after gold and silver fell in the previous session as a stronger US dollar and expectations of tighter monetary policy weighed on bullion.
What is driving gold and silver prices
Oil prices, which rose sharply in the previous session amid heightened geopolitical tensions, eased on Thursday (September 24) after Iran indicated that it remained open to diplomacy with the US.
Brent crude futures were down 0.9% at $102.13 a barrel, while West Texas Intermediate crude eased 0.7% to $91.56.
The developments around the Strait of Hormuz remain important for commodity markets because the waterway is a major route for global oil shipments. Iran and the US remain divided over the terms for ending the conflict, with Tehran seeking, among other things, the lifting of the US naval blockade and reopening of the Strait.
For bullion, however, the immediate focus remains on the interaction between geopolitical risk, the US dollar and interest-rate expectations.
Strong dollar remains a headwind for bullion
Gold had fallen about 1% in the previous session, with spot prices slipping below $4,320 an ounce. Silver also declined nearly 3% to around $65 an ounce.
Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, said gold and silver were pressured as the dollar strengthened to around 100.86, its highest level since July, while hawkish comments from Federal Reserve officials reinforced expectations of tighter monetary policy.
A stronger dollar can weigh on dollar-denominated commodities because it makes them relatively more expensive for buyers holding other currencies. Higher interest rates can also reduce the relative appeal of non-yielding assets such as gold.
Richmond Fed President Tom Barkin’s comments added to the hawkish tone, with the US central bank official indicating that rate increases, or the credible threat of further increases, could help contain inflation expectations.
What it means for Indian gold prices
In the domestic market, gold prices fell for a third consecutive session on Wednesday (September 23), declining ₹900 to ₹1.54 lakh per 10 grams in New Delhi, according to local traders. Silver, however, remained unchanged at ₹2.42 lakh per kg.
The recent correction comes after a sharp rise in domestic gold prices over the past year.
Akshat Garg, Head of Research & Product at Choice Wealth, said domestic gold prices had risen around 60% in a year, from roughly ₹98,000 to ₹1.57 lakh per 10 grams, citing the global rally, rupee depreciation and the increase in import duty from 6% to 15% in April.
The elevated prices are also changing buying patterns. Garg said consumers were opting for lighter jewellery, exchanging old gold and directing investment allocations towards coins, digital gold and gold ETFs rather than buying heavier jewellery.
The festive and wedding season is further expected to support jewellery demand, although elevated gold prices are influencing what consumers buy.
Rohan Hemdev, Director, Ananya Jewels, said the overlap of the festive and wedding seasons has kept jewellery buying sentiment positive, with growing interest in versatile pieces that can be used for celebrations, gifting and everyday wear. He also pointed to a rise in self-purchases, particularly among younger consumers and women, as jewellery becomes a way to mark festivals and personal milestones.
Hemdev expects demand to remain firm into the new year and sees the festive season contributing to double-digit growth for the industry.
-With agencies inputs