Silver, Gold Futures Rally on Weak Dollar, Global Market Rebound
Precious metals surged in futures trade on Monday, with silver posting sharp gains and gold extending its upward momentum, supported by a rebound in global markets, a weaker US dollar, and renewed investor demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), silver futures for March delivery jumped ₹11,853, or 4.74 per cent, to ₹2,61,745 per kilogram, with a business turnover of 6,396 lots.
Gold futures also witnessed strong buying interest. The April contract rose by ₹2,089, or 1.34 per cent, to ₹1,57,540 per 10 grams, with 8,279 lots traded on the MCX.
Global cues boost precious metals
In the international markets, silver futures on the Comex surged USD 4.80, or 6.25 per cent, to USD 81.70 per ounce. Gold futures climbed USD 81.69, or 1.64 per cent, to USD 5,061.49 per ounce.
Silver prices jumped more than 6 per cent towards USD 82 per ounce, while gold rose above USD 5,000 per ounce for the first time in over a week, supported by a softer US dollar, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He noted that traders continued to accumulate precious metals following a historic selloff that had wiped out nearly half of silver’s value in recent sessions.
Improved sentiment, geopolitical easing
Investor sentiment also improved after Prime Minister Sanae Takaichi’s ruling coalition secured a landslide victory in Japan’s weekend elections, raising expectations of expansionary fiscal policies, Trivedi said.
Meanwhile, talks between the US and Iran in Oman on Friday helped ease geopolitical tensions, lending stability to global markets, although Tehran reiterated its intention to continue nuclear fuel enrichment.
Central bank demand, US data in focus
Commodities market experts said China’s central bank extended its gold-buying spree for the 15th consecutive month in January, indicating sustained institutional demand for the yellow metal.
Market participants are now awaiting key US jobs and inflation data later this week for further cues on the Federal Reserve’s monetary policy outlook. US Treasury Secretary Scott Bessent said last week’s extreme volatility in precious metals was largely driven by speculative trading activity from Chinese investors.
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There is no logic for paper dollar to be valued so much. It is a trash paper