Gold, Silver Prices Surge as Fed Expectations Drive Bullion Rally

Gold and silver prices have surged significantly in the past week, with gold hitting ₹1.51 lakh per 10 grams and silver reaching ₹2.31 lakh per kg on the Multi Commodity Exchange (MCX). The bullion market saw a strong rally last week, driven by weaker-than-expected US labour market data and a softer dollar, which strengthened expectations of a more accommodative monetary policy stance from the Federal Reserve.

Pranav Mer, Senior Vice-President at EBG, Commodity & Currency Research at JM Financial Services, expects the positive momentum to continue. He predicts that gold could move towards ₹1.57 lakh per 10 grams and silver towards ₹2.80 lakh per kg in the short term.

The global bullion market also recorded significant gains, with international gold futures surging $292.7, or 7%, during the week to $4,399.7 an ounce. Silver futures soared $5.71, or nearly 10%, to $63.50 an ounce.