Gold and silver prices saw an increase on Monday, with precious metals climbing up to 1% due to a weaker US dollar and reduced inflation worries following a drop in crude oil prices post the US-Iran ceasefire. Gold futures on the Multi Commodity Exchange (MCX) started at Rs 1,43,575 per 10 grams and were trading at Rs 1,44,173 per 10 grams later in the day, marking a 0.75% rise.
Silver futures also experienced a surge, with the white metal reaching an intraday high of Rs 2,24,955 per kg, up by 1.22%. In the global market, spot gold traded near $4,100 per ounce, while silver was around $59 per ounce, both showing about a 1% increase.
Market analysts noted that gold bounced back from a nine-month low as the fall in crude oil prices alleviated inflation concerns post the US-Iran military pause. The decline in oil prices also led to a weaker US dollar, making gold more appealing to investors. The dollar index dropped to about 101.2 on Monday, shedding some gains from the previous week due to reduced geopolitical tensions affecting energy supply.
Experts anticipate a cautiously positive outlook for both gold and silver in the near term. For MCX Gold, immediate resistance levels are expected around Rs 1,45,500-1,46,000, with support at Rs 1,43,500-1,43,000. Similarly, for MCX Silver, resistance is seen at Rs 2,26,000-2,26,500 per kg, with support at Rs 2,23,000-2,22,300. Analysts suggest that maintaining current price levels and surpassing the immediate resistance could lead to further upside momentum.
