Bullion – Gold and Silver Extend Rally Amid Dollar Weakness
Bullion – Gold and silver prices recorded strong gains on Monday as investors increased their exposure to precious metals. The upward movement was largely driven by a softer US dollar and growing expectations regarding future interest rate decisions by the US Federal Reserve. Market participants continued to view bullion as an attractive asset amid shifting global economic signals.
Gold Registers Sharp Rise on MCX
On the Multi Commodity Exchange (MCX), gold futures for August delivery witnessed significant buying activity during the trading session. The contract climbed by more than 2 percent, reaching an intraday high of Rs 1,53,829 per 10 grams around midday.
Later in the session, gold was trading at Rs 1,52,774 per 10 grams, reflecting a gain of Rs 2,246 from the previous close. During the day, the metal touched a low of Rs 1,52,632 before recovering and maintaining positive momentum. The strong performance highlighted continued investor confidence in the precious metal despite changing global developments.
Silver Attracts Strong Investor Interest
Silver futures for July delivery also posted notable gains on the commodity exchange. The metal advanced nearly 3 percent and traded around Rs 2,53,345 per kilogram during intraday trade.
At the latest available levels, silver was quoted at Rs 2,51,692 per kilogram, showing an increase of Rs 5,500 compared with the previous settlement price. The contract moved within a range during the day, touching a low of Rs 2,51,425 per kilogram before regaining strength. Analysts noted that silver continued to benefit from improving sentiment across the broader precious metals segment.
Dollar Weakness Supports Precious Metals
Commodity market observers attributed the positive opening in gold and silver prices to the decline in the US dollar. The dollar index remained close to the 99.5 mark after falling to its lowest level in about a week.
A weaker dollar generally makes commodities priced in the US currency more attractive for international buyers, often supporting demand for assets such as gold and silver. This relationship remained one of the primary factors influencing market direction during the session.
Focus Shifts Toward Federal Reserve Signals
According to market analysts, attention has gradually moved away from geopolitical concerns and toward monetary policy developments in the United States. Investors are closely monitoring signals from the Federal Reserve regarding future interest rate actions, as these decisions can significantly influence demand for non-yielding assets like gold.
Experts also pointed out that silver has continued its rebound from recent lows. Supported by the broader strength in gold, the metal’s medium-term outlook remains favorable, provided global economic conditions remain supportive.
International Markets Mirror Domestic Trend
The positive sentiment was also visible in overseas markets, where COMEX gold and silver traded higher. Continued investor participation in precious metals reflected confidence in the sector despite easing geopolitical uncertainty.
Oil Prices Fall Following Peace Agreement Announcement
While bullion prices moved upward, crude oil markets witnessed a sharp decline. The drop followed an announcement by US President Donald Trump stating that the United States and Iran had reached a peace agreement. The development reduced concerns about possible disruptions to global energy supplies.
US benchmark West Texas Intermediate (WTI) crude fell by more than 5 percent and traded near $80 per barrel. Meanwhile, Brent crude, the international benchmark, declined around 4 percent to approximately $83 per barrel.
Trump stated on Truth Social that Washington and Tehran had finalized an agreement aimed at ending the conflict and restoring access through the Strait of Hormuz. The strategic maritime route is responsible for transporting nearly 20 percent of the world’s oil supply, making it a critical component of global energy trade.