Bullion futures rebound on Fed, oil price volatility

Gold futures recovered from early losses to trade higher on Tuesday as investors reassessed the US Federal Reserve’s interest rate outlook amid geopolitical tensions and volatile crude oil prices.

   On the MCX, gold futures for August delivery rose ₹196, or 0.14%, to ₹1,42,598 per 10 grams after opening in negative territory. The contract had settled at ₹1,42,402 per 10 grams in the previous session.

  Market experts said the recovery reflected renewed investor interest in safe-haven assets as uncertainty around inflation, oil prices and global monetary policy persisted. According to Gaurav Garg, Research Analyst at Lemonn Markets, gold prices fell sharply in early trade before recovering as investors reassessed the Federal Reserve’s likely policy path.

  In international markets, COMEX Gold Futures for August delivery edged higher to $4,044.80 per ounce in New York. Gold briefly slipped below the $4,000 mark, its lowest level in nearly eight months, before rebounding.  Analysts said geopolitical uncertainty continued to support bullion prices. Although the US and Iran paused hostilities ahead of fresh peace talks in Doha, concerns remain over Iran’s stance on shipping control through the Strait of Hormuz, a crucial global oil transit route.  Any disruption could intensify inflation concerns and support safe-haven demand.

  Meanwhile, silver futures also reversed early losses and traded sharply higher. Silver futures for September delivery on MCX climbed ₹3,693, or nearly 2%, to ₹2,26,327 per kg after opening lower. Globally, COMEX Silver Futures for September delivery rose 1.28% to $59.38 per ounce. 

  Analysts said silver’s rebound followed recent sharp losses, with value buying emerging at lower levels. Investors are now closely watching upcoming US jobs data for fresh signals on the Fed’s rate trajectory and its impact on precious metals.  —PTI