Gold and silver prices rise on the MCX as geopolitical tensions, central-bank buying and a weaker dollar support precious-metal demand
Gold and silver futures opened higher as investors increased safe-haven buying amid renewed tensions in West Asia. Short covering at key technical levels also supported gold, while continued purchases by central banks provided a floor to bullion prices.
On the Multi Commodity Exchange (MCX), the benchmark October gold contract opened at ₹1,53,362 per 10 grams, up ₹544 from the previous close of ₹1,52,818. The contract later traded near ₹1,53,457, gaining ₹639 during the session.
The benchmark December silver contract opened at ₹2,40,009 per kg, rising ₹993 from the previous close of ₹2,39,016. It later traded around ₹2,40,680, up ₹1,664.
Gold prices recover from recent pressure
MCX gold futures touched an intraday high of ₹1,53,640 and a low of ₹1,53,361. The contract has remained volatile as investors assess geopolitical developments, crude oil prices and the outlook for US interest rates.
Gold had earlier touched a yearly high of ₹1,80,779 per 10 grams. Although prices remain below that peak, demand continues to receive support from central-bank purchases and the metal’s traditional role as a store of value during periods of uncertainty.
In the international market, Comex gold opened at $4,466.50 per ounce and later traded near $4,479.80. Global gold prices were supported by a softer US dollar and renewed demand for defensive assets.
Silver extends gains
Silver futures also moved higher on the MCX, touching an intraday high of ₹2,41,180 per kg. The contract’s low for the session stood at ₹2,40,009.
On Comex, silver futures opened at $66.73 per ounce and later traded around $67.63, gaining approximately $0.88. Silver has benefited from investment demand as well as expectations of continued industrial consumption, although its price movements remain more volatile than gold.
Silver futures had earlier touched a yearly high of ₹4,20,048 per kg on the MCX, while the international contract had reached a high of $121.79 per ounce.
West Asia tensions boost safe-haven demand
Renewed geopolitical tensions in West Asia have increased demand for traditional safe-haven assets. Concerns over energy-supply disruptions and instability around key shipping routes have encouraged investors to seek protection through gold and other precious metals.
Brent crude was trading close to $98 per barrel, while concerns over possible disruption to oil flows through the Strait of Hormuz added to uncertainty in global markets. Higher crude prices can increase inflation risks and influence expectations surrounding interest rates and currency movements.
Indian bullion prices are particularly sensitive to global gold prices, crude oil and the rupee-dollar exchange rate. Any sharp movement in the domestic currency can amplify changes in international precious-metal prices.
Weaker dollar supports bullion
The US dollar index was trading lower, making dollar-denominated gold and silver more attractive for investors holding other currencies. A weaker dollar generally supports precious metals because it reduces the cost of bullion for non-dollar buyers.
However, the market remains divided between safe-haven demand and expectations of tighter US monetary policy. Recent US employment data strengthened expectations of a possible Federal Reserve rate hike, which could limit gains in non-yielding assets such as gold.
Gold and silver prices may therefore continue to react sharply to movements in US Treasury yields, the dollar index and upcoming economic data.
US inflation data in focus
Market participants are awaiting the US Producer Price Index and Consumer Price Index data due later this week. These readings could influence expectations regarding the Federal Reserve’s next policy decision.
A stronger-than-expected inflation reading could push bond yields higher and reduce the appeal of bullion. On the other hand, softer inflation data may revive expectations of monetary easing and support gold and silver prices.
The market is also closely tracking geopolitical developments, crude oil movements and central-bank buying, all of which are likely to remain important drivers for precious metals.
MCX and Comex prices
| Commodity | MCX Price | International Price |
|---|---|---|
| Gold | Around ₹1,53,450 per 10 grams | Around $4,480 per ounce |
| Silver | Around ₹2,40,700 per kg | Around $67.60 per ounce |
Market Outlook
Gold and silver may remain volatile in the near term as geopolitical developments, crude oil prices, the US dollar and Federal Reserve policy expectations continue to influence sentiment.
Gold is likely to retain support from safe-haven demand and central-bank buying, while silver could witness sharper price movements because of its industrial-use exposure. A sustained rise in geopolitical uncertainty may support bullion prices, but stronger US inflation data, higher bond yields or a more hawkish Federal Reserve stance could trigger profit-booking.
Traders should monitor key technical levels and avoid aggressive positions during periods of heightened volatility. Long-term investors may consider gradual accumulation rather than reacting to short-term price spikes.