Weaker US Dollar Boosts Gold, Silver Prices Amid Crude Oil Price Decline
Gold and silver prices surged on Monday as a weaker US dollar and eased inflation concerns boosted bullion. The sharp decline in crude oil prices after the suspension of hostilities between the United States and Iran reduced worries over energy supply disruptions.
The price of gold futures (August) opened at Rs 1,43,575 per 10 grams on the Multi Commodity Exchange (MCX), up from its previous close of Rs 1,43,106. By around 12:10 pm, gold was trading at Rs 1,44,173 per 10 grams, a 0.75% increase.
Silver futures (September) also rose significantly, with the white metal gaining as much as 1.26% to touch an intraday high of Rs 2,24,955 per kg. At the last count, it was trading at Rs 2,24,844, up Rs 2,706 or 1.22%.
Market experts attributed the rebound in gold prices to the easing of inflation concerns following the decline in crude oil prices. The lower oil prices also weakened the US dollar, making bullion more attractive to investors.