Gold and silver rise ahead of US inflation data as oil climbs

Gold and silver prices rose on MCX Tuesday as investors turned cautious ahead of key U.S. inflation data due later in the day. The gains come as rising crude oil prices lift inflation concerns and fuel fears that higher interest rates could stay elevated for longer. Investors are weighing the possibility of further rate hikes against gold’s traditional role as an inflation hedge.

In the domestic market, MCX silver futures for July 2026 delivery jumped Rs 3,132 or 1.1% to Rs 2,81,443 per kg. Gold futures for June 2026 delivery gained Rs 336 or 0.02% to Rs 1,53,999 per 10 grams. In the international arena, spot gold stayed around $4,732.89 per ounce as of 0246 GMT, while U.S. gold futures for June delivery rose about 0.3% to $4,742.40. Spot silver held steady at $86.08 per ounce, with platinum down 1.6% to about $2,098.25 and palladium slipping 1% to roughly $1,494.

Rising crude prices have added to inflation concerns, fueling expectations that interest rates could remain higher for longer. Although gold is widely viewed as an inflation hedge, the non-yielding metal tends to be less appealing when rates stay elevated. Market participants are also watching geopolitical headlines for further cues. Live events at the time included ongoing attention to U.S.–Iran tensions and a high-profile two-day visit by a former president to China, where discussions with leaders in Beijing could influence global risk sentiment.

Analysts note that gold and silver may remain volatile this week as the dollar index fluctuates, crude prices move, and traders await the release of the U.S. CPI data to gauge the Federal Reserve’s next move. Manoj Kumar Jain of Prithvi Finmart pointed to a cautious trading backdrop, suggesting that volatility could persist until clarity emerges from U.S. inflation numbers.

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