Gold and silver prices rose sharply on Monday despite easing tensions between the US and Iran. |
Mumbai: Gold and silver prices moved higher on Monday, with both precious metals gaining strongly despite signs of easing geopolitical tensions in West Asia.
On the Multi Commodity Exchange (MCX), gold futures for August delivery jumped as much as 2.19 per cent, or Rs 3,301, to touch an intraday high of Rs 1,53,829 per 10 grams.
Later in the day, gold was trading at Rs 1,52,774 per 10 grams, up Rs 2,246 or 1.49 per cent from the previous close. During the session, it touched a low of Rs 1,52,632.
Silver Outperforms Gold
Silver prices witnessed even stronger buying interest.
MCX silver futures for July delivery climbed nearly 3 per cent to Rs 2,53,345 per kg during intraday trade.
The metal was later trading at Rs 2,51,692 per kg, higher by Rs 5,500 or 2.24 per cent compared to the previous session. The day’s low stood at Rs 2,51,425 per kg.
Both gold and silver opened the session on a strong note, reflecting positive sentiment in the precious metals market.
Weak Dollar Supports Metals
According to commodity market experts, the main reason behind the rally was weakness in the US dollar.
The dollar index slipped to around 99.5 after falling to a one-week low following news of a peace agreement between the United States and Iran.
A weaker dollar generally makes gold and silver more attractive for global investors, increasing demand and supporting prices.
Analysts said investor attention is now shifting from geopolitical concerns to future decisions by the US Federal Reserve regarding interest rates.
Peace Deal Eases Oil Market Concerns
The gains in precious metals came even after US President Donald Trump announced that Washington and Tehran had reached a peace agreement, which is expected to be formally signed on June 19.
The announcement reduced concerns about disruptions in global energy supplies and helped crude oil prices fall sharply.
US WTI crude dropped more than 5 per cent to around $80 per barrel, while Brent crude declined nearly 4 per cent to about $83 per barrel.
Market experts believe gold remains supported by expectations of easier monetary policy, while silver continues to benefit from improving medium-term demand prospects.
