Gold and silver futures opened higher on June 11, but silver quickly lost momentum and slipped into the red within hours. Meanwhile, the August gold contract on the Multi Commodity Exchange climbed as much as 0.4% to an intraday high of ₹97,315 per 10 grams, as investors sought refuge in the safe-haven asset amid rising global uncertainty.
Although the demand for safer assets eased following positive signals from US-China trade talks, overall geopolitical tensions remain high as Donald Trump warned of increasing Iranian aggression in nuclear discussions. Apart from this the uptick in the gold prices also follows the decision given by the US Court of Appeals that allowed the reciprocal tariffs to remain in place amid ongoing appeals, Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, said in a note.
“Market focus now shifts to upcoming US CPI data, which is expected to show inflation rising to 2.5% year-over-year, potentially intensifying concerns over the broader US economic outlook,” she further added. This could further support this uptick.
On the other hand, July contract of silver begun its today’s session hovering around 0.1% higher, but then pared all its gains and fell up to 0.5% to its intraday low of Rs 1,06,200 per kilogram. Gold futures had a rally on COMEX as well, as it rose up to 0.6% there. Unlike MCX, silver futures maintained their gains up to extent today and were trading higher on COMEX as of 1:04 pm.
These precious metals gained ground after US-China tariff truce failed to calm the investors. Both sides agreed on a framework to ease export restrictions on rare earths. The US and China reached a broad consensus on advancing a trade deal after months of tit-for-tat tariffs.
Prices of the yellow metal are expected to test the resistance at 97500, Nirmal Bang Commodity Research said in its report. “One can buy at 96900 with a stop loss of 96600. One can also sell from 97500 with a stop loss of 97800.” For silver, the firm said that their prices are expected to rise and “one can buy at 105500 with a stop loss of 104000 for the target 107000-108500.”
