Gold and Silver Prices Surge as Geopolitics Ease and Dollar Weakens

Gold and silver prices surged on Monday in India, with MCX gold rising by Rs 1,024 or 0.72% to Rs 144,130 per 10 grams and MCX silver jumping by Rs 2,525 or 1.14% to Rs 224,663 per kg.

The rally comes after both precious metals corrected from their record highs in late January due to a stronger dollar, rising US Treasury yields, and concerns over inflation.

Easing geopolitical tensions in the Middle East, lower crude oil prices, and a weakening US dollar have revived demand for precious metals. Global gold prices gained as signs of a pause in hostilities between Iran and the United States reduced fears of disruptions to global oil supplies.

Analysts expect markets to closely watch the US Federal Reserve's policy meeting later this week for clues on interest rates, which could impact bullion prices. Despite Monday's strong rally, experts advise investors not to make decisions based solely on a single day's price movement, as gold and silver remain sensitive to developments surrounding the Fed and geopolitical tensions.