Gold, silver prices today: Comex gold and silver edge lower amid Middle East tensions, firm US dollar

Precious metals came under renewed selling pressure on Tuesday, 7 July, as investors assessed escalating tensions in the Middle East while awaiting the Federal Reserve's June meeting minutes for fresh clues on the US central bank's monetary policy outlook.

COMEX gold futures slipped $40 per troy ounce to an intraday low of $4,127, while silver futures fell $1.62 per troy ounce to $60.71.

In the previous session, the yellow metal climbed to a two-week high after a volatile trading session, while silver ended with gains of more than 2%.

Fresh geopolitical concerns resurfaced after reports emerged of another attack near the Strait of Hormuz.

According to the Associated Press, a Qatari LNG tanker and a Saudi-flagged crude oil tanker were damaged in the area. The incident marks the first reported attack on a Qatari LNG vessel since the Iran conflict began earlier this year.

The incident comes at a delicate stage in diplomatic efforts, with Qatar serving as a key mediator in negotiations between the US and Iran aimed at ending the conflict. Three separate attacks on ships would mark the highest number since interim peace, underscoring the continued risks to ships crossing through Hormuz.

However, concerns over higher inflation and interest rates have eased after crude oil prices retreated to pre-war levels following the announcement of an interim agreement between the US and Iran last month. Both countries are currently working towards a longer-term peace deal.

While crude oil prices have fallen back to pre-war levels, gold and silver remain well below their February highs, despite staging a healthy recovery in recent sessions. Gold is still 24% below its February peak, while silver remains 38% lower.

Meanwhile, the rebound in the US dollar also weighed on precious metals. The US Dollar Index, which measures the greenback against a basket of major currencies, rose 0.14% to 101, following two consecutive sessions of modest declines.

Looking ahead, investors will closely monitor the minutes of the Federal Reserve's latest policy meeting, due on Wednesday, for fresh clues on policymakers' outlook. However, expectations of an imminent interest rate hike have eased after US hiring slowed sharply in June, signalling that the labour market remains under pressure despite showing resilience in recent months.

MCX gold, silver remain under pressure

Tracking weakness in the international market, MCX gold futures slipped ₹1,916 per 10 grams to an intraday low of ₹1,45,001.

In the previous session, the yellow metal had declined ₹461. Last week, gold came close to the ₹1.50 lakh mark, a level last seen in mid-June.

MCX silver futures also remained under pressure for a second consecutive session, falling ₹6,371 per kg to an intraday low of ₹2,29,638.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.