On the Multi Commodity Exchange (MCX), gold futures for October delivery were trading at ₹1.43 lakh per 10 grams, up about 0.18%, while silver futures for September delivery gained 0.53% to ₹2.18 lakh per kg.
Analysts attributed the rise to fresh buying and firm spot demand.
Internationally, Comex gold hovered above $4,100 per ounce, while silver rose more than 1%, supported by renewed safe-haven demand.
Why are gold and silver prices rising?
Several global factors are supporting bullion prices.
The US dollar has weakened, making gold more attractive for holders of other currencies. At the same time, crude oil prices have declined after optimism over diplomatic engagement between the US and Iran reduced concerns about disruptions to oil supplies through the West Asia.
Lower oil prices have also eased immediate inflation concerns. However, markets remain cautious over the US Federal Reserve’s interest rate outlook after policymakers continued to signal concerns over inflation.
Investors are now awaiting key US economic data, including the non-farm payrolls report and other labour market indicators, which could influence expectations on future interest rate moves.
Domestic prices tracking global cues
Domestic bullion prices have largely mirrored international trends, with movements in the rupee and global precious metal prices remaining the key drivers.
Darshan Desai, CEO of Aspect Bullion & Refinery, said gold and silver continue to attract investor interest as markets navigate economic uncertainty and geopolitical developments.
He added that although domestic prices are expected to remain volatile in the short term, they are largely reflecting developments in global markets.
According to the Lemonn Markets Desk, softer oil prices and a weaker dollar have improved sentiment towards precious metals, prompting renewed safe-haven buying. The decline in crude prices has also eased inflation concerns, although investors remain focused on the US Federal Reserve’s policy outlook and a string of key economic data due this week.
Focus should remain on the long term
Market participants say near-term volatility is likely as investors react to macroeconomic data and geopolitical headlines.
Desai cautioned against taking investment decisions based solely on day-to-day price movements.
“Investors should avoid making decisions based on daily price fluctuations and instead maintain a long-term approach. Gold and silver continue to play an important role in portfolio diversification and wealth preservation during periods of uncertainty,” he said.
Analysts expect bullion prices to remain sensitive this week to US employment data, movements in the dollar, crude oil prices and evolving expectations around the Federal Reserve’s interest rate path.
