Silver Slides While Gold Holds Near $4,450 Amid Fed Rate Expectations

Both gold and silver opened Thursday with noticeable strength in India’s futures market, yet the early vigor faded as traders took profits. Gold’s October contract rose ₹189 to ₹1,55,071 per 10 grams at the start, but later settled at ₹1,53,800, a dip of 0.70 per cent.

The intra‑day swing saw gold peak at ₹1,55,145 before sinking to a low of ₹1,53,600. While the price is comfortably above recent volatility, it remains well below the year‑high benchmark of ₹1,80,779.

Silver’s September delivery began at ₹2,38,000 per kilogram, up ₹165, but soon reversed, sliding 1.07 per cent to ₹2,35,300. The metal touched a high of ₹2,38,000 and a low of ₹2,35,236 during the session, distant from its historic peak of ₹4,20,048.

On the global stage, COMEX gold opened at $4,468.80 per ounce and slipped $2.40 to $4,465.10. Silver opened at $65.45 and edged higher to $65.59, staying within a narrow band around recent highs.

Investor focus is now on the upcoming U.S. Producer Price Index, following a July CPI report that showed a 3.4 per cent rise – a slight moderation from June’s 3.5 per cent and in line with market expectations. The data has revived speculation that the Federal Reserve may pause its rate‑hike cycle.

Current sentiment places the probability of a September Fed rate increase at roughly 40 per cent, down from the previous week’s 54 per cent estimate. A reduced chance of tightening monetary policy generally supports gold, as lower rates enhance the attractiveness of non‑interest‑bearing assets.

Geopolitical instability in the Middle East, highlighted by attacks on merchant vessels and lingering disputes involving Iran, continues to prop up crude‑oil prices, indirectly sustaining demand for gold as a safe‑haven.

As long as inflation pressures ease gradually and global uncertainties linger, the market is likely to keep favouring precious metals, providing continued support for both gold and silver despite short‑term pullbacks.