On COMEX, gold was trading at $4,477.40 per ounce, up $0.80, or 0.02%, from the previous close. The contract moved between a high of $4,482.50 and a low of $4,426.20 an ounce during the session.
Silver outperformed gold, with COMEX silver rising $0.752, or 1.13%, to $67.50 per ounce. It touched an intraday high of $67.675 and a low of $66.025 an ounce.
The moves come a day after gold prices in Delhi fell ₹650 to ₹1.60 lakh per 10 grams, while silver remained unchanged at ₹2.40 lakh per kg. In global markets on Monday (September 7), spot gold had declined nearly 1% to around $4,395 an ounce, while silver fell about 1% to $65.64 an ounce.
Geopolitical tensions keep bullion supported
A rise in geopolitical tensions is providing some support to precious metals. Oil prices have also moved higher for a third straight session amid fresh threats from Iran to target energy infrastructure in the Persian Gulf in response to further attacks.
Brent crude was trading around $97 a barrel in Asian trade on Tuesday (September 8). Higher oil prices and renewed geopolitical uncertainty can boost demand for traditional safe-haven assets such as gold.
“Gold whipsawed through last week — sliding to a three-week low near $4,300 an ounce before rallying above $4,540 an ounce on dovish Fed comments, then retreating to $4,477 an ounce after a blowout August jobs report reignited rate-hike bets,” said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd.
US inflation data in focus
The near-term direction for gold could depend heavily on upcoming US inflation data. Markets are awaiting the Producer Price Index (PPI) and Consumer Price Index (CPI) readings this week for clues on the Federal Reserve’s interest-rate path.
Stronger-than-expected US jobs data had recently raised expectations of a possible rate hike, putting pressure on gold. A higher interest-rate environment generally weighs on non-yielding assets such as gold.
At the same time, the US dollar index was trading near a two-week low, which can offer some support to dollar-denominated bullion.
What investors should watch
For Indian bullion prices, the next moves will depend on a combination of global gold and silver prices, the rupee-dollar exchange rate, US inflation data, and geopolitical developments. A weaker rupee can amplify gains in domestic gold prices even when international prices remain relatively stable.
The immediate focus, therefore, remains on the US inflation numbers and whether they strengthen or weaken expectations around the Federal Reserve’s next policy move.
-With Reuters inputs
