Gold prices moved higher in the Indian commodity market as easing crude oil prices and a weaker US dollar improved investor sentiment. Silver also recorded strong gains, extending the positive momentum seen in precious metals during the previous week.
Gold Futures Cross ₹1.44 Lakh on MCX
On the Multi Commodity Exchange (MCX), December gold futures climbed to an intraday high of ₹1,44,400 per 10 grams. By 7:13 PM, the contract was trading at ₹1,44,050, up ₹1,498 or approximately 1.05% from its previous closing level of ₹1,42,552.
Internationally, gold futures also crossed the $4,100-per-ounce mark, reflecting renewed demand for the precious metal.
Why Are Gold Prices Increasing?
Several global factors contributed to the latest rise in bullion prices. Softer crude oil prices helped ease concerns about inflation, while a decline in the US dollar provided additional support to gold.
Investors are also monitoring geopolitical developments and upcoming economic data from major economies. These indicators could influence inflation expectations and future interest rate decisions.
However, expectations that the US Federal Reserve may maintain a relatively tight monetary policy could limit further gains in gold prices.
Silver Prices Also Record Strong Gains
Silver followed gold’s upward movement on Monday. MCX December silver futures touched an intraday high of ₹1,89,399 per kilogram. The metal was trading near ₹1,88,599 per kilogram in the afternoon session, reflecting a significant recovery.
International silver prices also advanced, trading above $53 per ounce.
What Should Investors Watch Next?
Market participants will closely follow US inflation figures, Federal Reserve commentary, crude oil movements and geopolitical developments for further direction.
Although the recent recovery has improved sentiment in the precious metals market, gold and silver prices may continue to experience volatility as global economic signals evolve.
