Gold and silver prices surged sharply on the MCX amid a weaker U.S. dollar, firm global demand, and rising expectations of Federal Reserve rate cuts. The rally extended across international markets, with other precious metals also trading higher.
Precious Metals Shine as Dollar Weakens and Demand Improves
New Delhi: Gold and silver prices saw a sharp rise on the Multi Commodity Exchange (MCX) today on Monday. MCX Gold April futures rose by more than ₹3,000 to reach around ₹1,58,500 per 10 grams. Meanwhile, the March contract for silver rose by nearly 6%, reaching ₹2,64,885 per kilogram. This sudden surge in prices has sparked renewed discussions among investors about buying or booking profits.
Silver led the recovery. MCX silver rose nearly 4% to ₹2,59,887 per kg, while spot silver in the international market jumped 2.5%, extending the previous session's sharp gain of nearly 10%.
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On the other hand, gold prices also remained strong. MCX gold rose nearly 2% to ₹1,58,500 per 10 grams. Spot gold jumped 1.7% in early trade to cross $5,000 per ounce, though it later pared some gains.
Other precious metals also rose-spot platinum rose 1.8% to $2,134.18 an ounce, and palladium climbed 1.8% to $1,737.75 an ounce. This indicated broad strength across the precious metals market.
The weakness of the US dollar is believed to be a key reason behind the rise in gold and silver prices. The dollar reached its lowest level since early February, making dollar-denominated metals affordable for foreign buyers. Furthermore, ongoing global geopolitical uncertainties and expectations of further rate cuts by the US Federal Reserve have also supported the bullion market.
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Experts believe that factors such as a weak dollar, global uncertainty, and potential monetary easing could support gold and silver in the near term. However, the possibility of profit-booking cannot be ruled out after such a sharp rise. Therefore, investors should strategize based on market trends, global cues, and their investment goals rather than making hasty decisions.
If the dollar remains weak and global economic and political uncertainty persists, gold and silver may remain elevated. At the same time, any positive global cues or profit-booking could lead to price fluctuations. Experts are advising balanced investing and phased buying.
