Gold, on Monday, held near a one-week high on speculation that investors have factored in a US interest-rate increase, which may happen as early as next month. Gold added 0.1 percent to USD 1,095.40 an ounce. It reached USD 1,099.63 on Friday, the highest since July 31.
Silver also gained 0.7 percent to USD 14.93 an ounce. While gold dropped the past seven weeks in the longest run of losses in 11 years, prices rose on Friday even as data showed an improving US jobs market and backed the case for higher rates.
In the past week, the S&P GSCI Commodity Index has dropped 3.4 in the past week, as crude oil plunged 7 percent to hit multi-month lows, and a host of metals fell alongside it.
As the Fed ended its quantitative easing program and now appears months away from raising rates what now appears to have been a massive bubble in commodities like gold has slowly popped.
But Fed fears didn’t form the only bull case for commodities. Others maintained that the global economy would heat up, leading to greater demand for industrial commodities like oil and copper.
MCX SILVERMIC August contract was trading at Rs 34205 up Rs 155, or 0.46 percent. The SILVERMIC rate touched an intraday high of Rs 34230 and an intraday low of Rs 33980. So far 14508 contracts have been traded. SILVERMIC prices have moved down Rs 2131 or 5.86 percent in the August series so far.
MCX GOLDPETAL August contract was trading at Rs 2484 up Rs 4, or 0.16 percent. The GOLDPETAL rate touched an intraday high of Rs 2488 and an intraday low of Rs 2477. So far 1342 contracts have been traded. GOLDPETAL prices have moved down Rs 250 or 9.14 percent in the August series so far.
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