Gold and silver: Due to global signals and a weak dollar prices surge on the MCX
Gold and silver: Early Monday trading saw a strong increase in the price of gold and silver due to the US dollar’s weakness and encouraging global indications.
Gold February futures were up 0.72 percent at Rs 1,34,580 per 10 kilos during early trading on the Multi Commodity Exchange (MCX).
Strong purchasing activity was also seen in silver March futures, which increased 1.36 percent to Rs 1,95,466 per kg.
The preceding session had also witnessed significant fluctuations in the precious metals. MCX gold February futures reached a new high of Rs 1,35,263 per 10 kilos on Friday, December 12, after rising by around Rs 2,800, or more than 2%.
Gold closed the session 0.82 percent higher at Rs 1,33,551 per 10 grams, although some profit booking at higher levels caused prices to decline from the top.
In the most recent session, Silver also experienced a new high of his life. At an all-time high of Rs 2,01,615 per kg, MCX silver March futures jumped by Rs 2,700, or 1.3%.
Heavy profit taking caused a steep decline at the close, with silver closing 3.33 percent down at Rs 1,92,318 per kg, despite the substantial advance.
Bond rates and the US dollar’s decline propelled Monday morning’s advances. The benchmark 10-year US Treasury yield decreased to 4.18 percent, while the dollar index fell by around 0.10 percent.
Investors find non-yielding assets like gold and silver more appealing when the dollar declines and bond rates decrease.
Since the US Federal Reserve issued a 25 basis point interest rate drop on December 10, the price of gold and silver has been steadily rising. One of the main factors driving bullion prices this year has been expectations of more rate reduction by the US Fed.
In addition to interest rate expectations, other factors that have contributed to price increases include robust central bank purchases, robust inflows into gold and silver exchange-traded funds, and increased geopolitical tensions and uncertainty around the global economic outlook as a result of US tariffs.