Gold and silver futures prices rallied to multi-month highs on Tuesday as the current indications by the Federal Reserve will hold interest rates at historic lows for some considerable time continued to boost demand for precious metals.
U.S. Exchange, gold for August futures delivery rose to a session peak of $ 1,326.40 a troy ounce, was the highest since April 15 before paring gains of the last trade of $ 1,324.20 during the European hours in the morning to 0.44%, or $ 5.80.
Also on the U.S. Exchange, silver for September futures delivery rallied 0.85%, or 17.8 cents, to trade at $21.14 a troy ounce, the highest level since March 18.
Gold and Silver prices also on MCX were trading higher on Tuesday. At the Multi Commodity Exchange, gold for delivery in August contracts declined by Rs 156, or 0.56 per cent, to Rs 27,832 per 10 gram. Gold price hit an intraday high of Rs 27842 and an intraday low of Rs 27585. So far 6080 contracts have been traded.
At the Multi Commodity Exchange, Silver for delivery in September was trading at Rs 45330 up Rs 465, or 1.04 percent. Silver price hit an intraday high of Rs 45344 and an intraday low of Rs 44657. So far 869 contracts have been traded.
The prices of gold and silver have been well leaning over the past sessions after Fed President Janet Yellen said last week as the central bank in no hurry to raise interest rates.
Precious metals are likely to benefit low interest rates and looser monetary policy, reducing the opportunity costs of keeping bullion non-yields.
Market participants looked ahead to key U.S. data on consumer trust and a report on new home sales later in the day to measure the strength of the economy.
The prospects for the U.S. recovery was boosted after data on Monday showed that manufacturing activity rose at the fastest rate within four years in June, while sales of existing homes jumped more than expected in May.
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