Gold and silver prices saw an increase on Wednesday, influenced by the decline in oil prices and the dollar index. Gold futures on the Multi Commodity Exchange (MCX) for June 5 opened higher at Rs 1,52,000 per 10 grams, marking a 1.5% rise from the previous close.
By 11:30 am, gold was trading at Rs 1,52,419, up by 1.78%. The yellow metal reached an intraday high of Rs 1,52,450, showing a 1.8% increase. Even at the intraday low, it remained higher by 1.26% at Rs 1,51,653.
Silver futures for July 3 also surged, opening at Rs 2,49,316 per kg, a 2.04% jump from the previous close. Currently, silver is trading at Rs 2,51,699, up by 3.02%.
In the global market, both gold and silver prices were on the rise. COMEX gold was up by 1.92% at $4,656 per ounce, while silver gained 3.45% to $76.12 per ounce.
Analysts noted that gold prices increased after a recovery from a one-month low, supported by reduced concerns regarding US-Iran tensions and some stability in oil prices. However, the prices are still affected by elevated crude prices and expectations of a prolonged high-interest rate environment.
Moreover, the dollar index decreased by 0.34% to 97.97, which typically benefits precious metals like gold and silver. A weaker dollar tends to support their prices.
On Tuesday, Brent crude fell by 2.30% to $107.33 per barrel, and US West Texas Intermediate crude dropped by 3% to $99.12 per barrel.
