Gold, Silver Surge as Weaker Dollar Eases Inflation Concerns
Gold and silver prices surged on Monday in India due to a weaker US dollar and easing inflation concerns. The precious metals gained up to 1% as crude oil prices plummeted following the suspension of hostilities between the United States and Iran.
On the Multi Commodity Exchange (MCX), gold futures for August opened at Rs 1,43,575 per 10 grams, higher than the previous close of Rs 1,43,106. At around 12:10 pm, gold was trading at Rs 1,44,173 per 10 grams, up Rs 1,067 or 0.75%.
Silver futures for September also traded higher, with a gain of about 1.26% to touch an intraday high of Rs 2,24,955 per kg. The spot gold price in the international market gained around 1% to trade near $4,100 per ounce, while silver rose nearly 1% to around $59 per ounce.
Market experts attribute the rebound in gold prices from a nine-month low to the sharp decline in crude oil prices easing inflation concerns after the US and Iran paused military operations. Lower oil prices also weakened the US dollar, making bullion more attractive to investors.