Gold, silver futures ease amid dollar pressure

Gold and silver futures declined on Thursday as a firmer US dollar and the US Federal Reserve's cautious stance on interest rates dampened sentiment across precious metals. On the MCX, gold for August delivery fell ₹181, or 0.13%, to ₹1,41,600 per 10 grams after giving up early gains. The October contract declined ₹252, or 0.18%, to ₹1,43,031 per 10 grams.In overseas markets, Comex gold futures for August delivery slipped marginally to $4,031.70 per ounce.   According to Deveya Gaglani, Senior Research Analyst – Commodities at Axis Direct, gold came under pressure as a stronger US dollar and the Federal Reserve's cautious policy stance outweighed inflation concerns arising from renewed tensions in West Asia.

The US Fed kept its benchmark interest rate unchanged at 3.5-3.75% on Wednesday and reiterated its commitment to maintaining ample liquidity in the banking system. Analysts said the central bank's data-dependent approach could support the US dollar and limit gains in precious metals.

Silver futures also weakened, with the September contract on MCX falling ₹271, or 0.12%, to ₹2,17,208 per kg. Comex silver futures for September delivery edged lower to USD 57.87 per ounce amid subdued domestic demand and softer global trends.  Market participants will closely monitor upcoming US economic data and geopolitical developments, which are expected to influence the dollar, interest rate expectations and bullion prices. —PTI