Gold, Silver Prices Rally Up To 2 Pc As Softer Crude; Weaker Dollar Support Bullion

Gold and silver prices rallied up to 2 per cent on Monday. Softer crude oil prices, a weaker US dollar and improving investor sentiment supported the gains.

On the Multi Commodity Exchange (MCX), December 4 gold futures rose 1.29 per cent, or Rs 1,848, to hit an intraday high of Rs 1,44,400 per 10 grams.

At around 12:55 pm, gold traded at Rs 1,43,700, up Rs 1,148 or 0.81 per cent from its previous close.

Silver futures gained 2.32 per cent, or Rs 4,299, to touch an intraday high of Rs 1,89,399 per kg. The metal later traded at Rs 1,86,840, up Rs 1,740 or 0.94 per cent.

Market experts attributed the rally to easing inflation concerns and a retreat in the US dollar. Softer crude prices further strengthened investor sentiment.

Gold gained momentum after the US midterm elections. However, stronger-than-expected October job growth and a decline in unemployment to 4.1 per cent reinforced expectations of a December interest rate hike by the US Federal Reserve.

In international markets, COMEX gold rose around 1 per cent to nearly $4,130, while silver gained 2 per cent to approximately $53.10.

Experts said investors would track US inflation data, Federal Reserve signals, geopolitical developments and Russia-Ukraine peace talks for further direction.

Meanwhile, easing US-Iran tensions reduced concerns over potential supply disruptions and kept crude oil prices under pressure.

Experts maintained a cautiously positive near-term outlook for both metals, although elevated US Treasury yields and expectations of a Fed rate hike could limit further gains.

Also Read: Rupee Rises 25 Paise To 93.68 Against US Dollar On Lower Crude Prices, Global Cues