Mumbai
Gold and silver prices rose sharply on Monday, driven by a weaker US dollar and positive global cues, according to early trading on the Multi Commodity Exchange (MCX).
Gold February futures gained 0.72 percent to trade at Rs 1,34,580 per 10 grams, while silver March contracts climbed 1.36 percent to Rs 1,95,466 per kilogram, showing strong buying interest from investors.
The precious metals had already seen sharp movements in the previous session. On Friday, December 12, MCX gold February futures surged nearly Rs 2,800, or over 2 percent, to a record high of Rs 1,35,263 per 10 grams. However, profit booking later pulled gold down to close at Rs 1,33,551 per 10 grams, up 0.82 percent.
Silver also touched an all-time high in the last session, rising Rs 2,700, or 1.3 percent, to Rs 2,01,615 per kilogram. Heavy profit booking later led silver to settle 3.33 percent lower at Rs 1,92,318 per kilogram.
Market analysts said the gains on Monday were supported by a weaker US dollar, which fell 0.10 percent, and a drop in the 10-year US Treasury yield to 4.18 percent. Lower bond yields and a soft dollar make non-yielding assets like gold and silver more attractive to investors.
Bullion prices have been on an upward trend following the US Federal Reserve’s 25-basis-point rate cut on December 10, with expectations of further rate reductions fueling demand. Additional factors such as strong central bank buying, inflows into gold and silver ETFs, geopolitical tensions, and global economic uncertainties related to US tariffs have also helped push prices higher.
The combination of these factors suggests continued investor interest in gold and silver as safe-haven assets amid global market volatility.