Gold And Silver Prices Are Surging Again: What’s Driving The Rally

Gold and silver prices registered strong weekly gains in the domestic commodities market as geopolitical tensions and fluctuations in crude oil prices continued to drive investor demand for safe-haven assets.

On the Multi Commodity Exchange, gold futures for June 5 delivery settled at Rs 1,58,547 per 10 grams on Friday, rising Rs 6,017 or 3.94 per cent during the week.

Silver futures for July 3 delivery also ended higher at Rs 2,71,886 per kilogram, gaining Rs 9,964 or 3.8 per cent.

Gold witnessed sharp swings throughout the week. The precious metal touched an intraday high of Rs 1,64,497 on May 13 after surging nearly 7.84 per cent from lower levels. It, however, had earlier slipped to an intraday low of Rs 1,51,500 on May 11.

Silver recorded even stronger volatility. Prices climbed to an intraday high of Rs 3,04,891 on May 13, marking a rise of more than 16 per cent during the period. At the lower end, silver had fallen to Rs 2,60,986 on May 11.

Market analysts said gold futures are currently trading near the Rs 1,58,000–1,59,000 range after witnessing profit booking from higher levels, though the broader trend remains positive.

According to experts, gold faces immediate resistance around Rs 1,60,000–1,61,000, while support is expected near Rs 1,55,000–1,54,000.

Silver futures are hovering close to the Rs 2,70,000–2,72,000 range following a heavy correction from highs near Rs 3,05,000.

Analysts said buying interest remains visible at lower levels despite continued volatility.

Data released by the India Bullion and Jewellers Association showed that the price of 24-carat gold stood at Rs 1,58,159 per 10 grams on Friday.

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