Mumbai: Gold and silver prices traded higher on Monday, supported by a weaker US dollar and easing inflation concerns after crude oil prices declined following the suspension of hostilities between the United States and Iran.
Precious metals witnessed strong buying interest as lower crude oil prices reduced fears of rising inflation, while the fall in the dollar made bullion more attractive for investors.
Gold crosses ₹1.44 lakh per 10 grams on MCX
On the Multi Commodity Exchange (MCX), gold futures for August delivery opened at ₹1,43,575 per 10 grams, compared with the previous close of ₹1,43,106.
At around 12:10 pm, gold was trading at ₹1,44,173 per 10 grams, gaining ₹1,067 or 0.75 percent. During the session, the yellow metal touched an intraday high of ₹1,44,230 per 10 grams, marking a rise of nearly 0.8 percent.
In the international market, spot gold gained around 1 percent and traded near $4,100 per ounce.
Silver jumps over 1% as demand improves
Silver futures for September delivery also witnessed strong gains on MCX. The white metal touched an intraday high of ₹2,24,955 per kg.
At the latest count, silver was trading at ₹224,844 per kg, up ₹2,706 or 1.22 percent.
International silver prices also gained nearly 1 percent to trade around $59 per ounce, supported by positive market sentiment and renewed investor interest.
Weaker dollar, falling crude oil support bullion prices
Market experts said gold recovered from a nine-month low as the sharp decline in crude oil prices eased inflation worries following the pause in military operations between the US and Iran.
Lower oil prices also weakened the US dollar, improving the appeal of gold and silver among global investors. The dollar index slipped to around 101.2, giving up some of its recent gains as geopolitical tensions eased.
Analysts expect the near-term outlook for precious metals to remain cautiously positive amid global economic developments.
Gold, silver technical levels under watch
For MCX Gold, immediate resistance is seen in the ₹1,45,500-₹1,46,000 range, while support remains around ₹1,43,500-₹1,43,000. A sustained move above the resistance zone could further strengthen the recovery.
For MCX Silver, resistance is placed at ₹226,000-₹226,500 per kg, followed by ₹228,000-₹228,500 per kg. Support levels are seen around ₹2,23,000-₹2,22,300 per kg.
Experts said silver prices need to remain above current levels and break immediate resistance zones to gain further upward momentum.
Gold and silver rates across Indian cities may vary due to local taxes, making city-wise retail prices different from MCX rates. Buyers and investors are advised to check the latest local prices before making transactions.