Gold and silver prices on the Multi Commodity Exchange (MCX) extended their gains on Monday, November 9, with silver outperforming gold amid a recovery in global bullion prices and renewed buying at lower levels.
On the MCX, gold futures for December delivery were trading at ₹1.44 lakh per 10 grams, up ₹1,582, or 1.11%, from the previous close. Silver futures for December delivery gained ₹3,147, or 1.70%, to trade at ₹1.88 lakh per kilogram.
The recovery in domestic bullion prices follows a period of volatility in precious metals, with investors assessing global economic cues, crude oil movements and the outlook for US interest rates.
In international markets, spot gold was trading at $4,121.30 per ounce, up 1.25%, while silver gained 1.83% to $52.89 per ounce, according to data shared by Gaurav Garg, Head of Research at Lemonn.
What is driving gold and silver prices?
According to Garg, gold and silver are extending their recovery, with silver outperforming gold as bargain buying returns following the sharp correction in October.
Gold moving back above the $4,100-per-ounce mark has also been supported by softer crude oil prices, which have eased some inflation concerns and improved the appeal of precious metals, he said.
However, the outlook remains sensitive to US interest-rate expectations. Stronger-than-expected October employment data has increased the possibility of another Federal Reserve rate hike in December, keeping investors watchful of further cues on monetary policy.
In India, physical gold purchases amid the festive season have also provided some support to demand, Garg said.
What should investors watch?
Investors will track developments in the US-Iran situation, crude oil prices and inflation data for further direction in bullion markets.
The outlook for US interest rates will remain important, with Federal Reserve officials’ commentary and upcoming economic indicators likely to influence expectations around monetary policy.
Currency movements will also be relevant for domestic prices. The rupee was trading near ₹93.87 against the US dollar, supported by lower crude prices, renewed foreign investment flows and easing geopolitical risks, according to Garg.
For domestic investors, gold and silver prices will therefore continue to reflect a combination of international bullion movements, rupee-dollar fluctuations, interest-rate expectations and physical demand.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.