Gold and Silver Futures Rebound Sharply on Safe-Haven Demand
Safe-haven buying has returned to the bullion market with significant force, as both silver and gold futures rebounded sharply in recent trading sessions. This resurgence is primarily attributed to supportive global cues and a notably softer US dollar, which have collectively fueled investor interest in precious metals as protective assets.
Gold Futures See Strong Value Buying
Gold futures experienced robust value buying, with the April contract surging by Rs 1,397, representing a substantial gain of 0.89 per cent, to settle at Rs 1,58,200 per 10 grams. This marks a notable recovery from the previous session, where the yellow metal had closed lower at Rs 1,56,803 per 10 grams, indicating a swift turnaround in market sentiment.
Silver Outperforms with Impressive Gains
On the Multi Commodity Exchange (MCX), silver for March delivery demonstrated even stronger performance, skyrocketing by Rs 9,665, or an impressive 3.83 per cent, to reach Rs 2,62,213 per kg. This sharp increase follows a previous session decline where the white metal had dropped by Rs 10,072, nearly 4 per cent, to settle at Rs 2,52,548 per kg, highlighting the volatile yet bullish nature of current market dynamics.
Current Gold Prices Across Major Indian Cities
Here is a detailed breakdown of how much gold costs in major Indian cities today, reflecting the upward trend in domestic markets:
- Delhi: 22K gold is selling at Rs 14,545 per gram, up Rs 55; 24K gold is quoted at Rs 15,866 per gram, higher by Rs 60; 18K gold stands at Rs 11,904 per gram, up Rs 45.
- Mumbai: 22K gold at Rs 14,530 per gram, higher by Rs 55; 24K gold at Rs 15,851 per gram, up Rs 60; 18K gold at Rs 11,889 per gram, gaining Rs 45.
- Chennai: 22K gold priced at Rs 14,600 per gram, up Rs 20; 24K gold at Rs 15,928 per gram, higher by Rs 22; 18K gold quoted at Rs 12,540 per gram, up Rs 10.
- Kolkata: 22K gold at Rs 14,475 per gram; 24K gold priced at Rs 15,791 per gram; 18K gold quoted at Rs 11,844 per gram.
- Ahmedabad: 22K gold trades at Rs 14,535 per gram, up Rs 55; 24K gold at Rs 15,856 per gram, higher by Rs 60; 18K gold priced at Rs 11,894 per gram, up Rs 45.
- Hyderabad: 22K gold quoted at Rs 14,530 per gram, up Rs 55; 24K gold at Rs 15,851 per gram, higher by Rs 60; 18K gold priced at Rs 11,889 per gram, up Rs 45.
- Jaipur: 22K gold retailing at Rs 14,545 per gram, up Rs 55; 24K gold priced at Rs 15,866 per gram, higher by Rs 60; 18K gold stands at Rs 11,904 per gram, up Rs 45.
- Lucknow: 22K gold at Rs 14,545 per gram, higher by Rs 55; 24K gold at Rs 15,866 per gram, up Rs 60; 18K gold quoted at Rs 11,904 per gram, up Rs 45.
- Patna: 22K gold priced at Rs 14,480 per gram; 24K gold at Rs 15,796 per gram; 18K gold quoted at Rs 11,849 per gram.
- Bangalore: 22K gold at Rs 14,530 per gram, up Rs 55; 24K gold priced at Rs 15,851 per gram, higher by Rs 60; 18K gold quoted at Rs 11,889 per gram, up Rs 45.
Analysts Point to Weak Dollar and Geopolitical Tensions
Market analysts have highlighted that bullion demand has strengthened significantly due to a combination of a weak US dollar and renewed geopolitical tensions, particularly between the US and Iran. These factors have boosted the safe-haven appeal of precious metals, drawing investors seeking stability amid uncertainty.
"MCX gold rose nearly 1 per cent, reclaiming levels above Rs 1.58 lakh per 10 grams, while silver outperformed the yellow metal with around a 3 per cent gain, crossing Rs 2.60 lakh per kg," said Gaurav Garg, Research Analyst at Lemonn Markets Desk, as quoted by PTI. He further added that investor sentiment improved after softer US economic data increased expectations of rate cuts and pointed to slowing economic momentum, which typically favors non-yielding assets like gold and silver.
Global Market Trends Support Bullion Rally
In the global market, Comex silver futures for March delivery rose by USD 3.11, or 4 per cent, to USD 83.50 per ounce, while gold for April delivery climbed nearly 1 per cent to USD 5,071.86 per ounce. This international uptrend has provided additional impetus to domestic prices.
"Gold and silver prices rose as US Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key jobs data," explained Manav Modi, Analyst, Commodities at Motilal Oswal Financial Services Ltd. The dollar index declined by 0.23 per cent to 96.59, offering further support to bullion prices globally, as a weaker dollar makes commodities priced in the currency more affordable for international buyers.
Overall, the rebound in gold and silver futures underscores a renewed confidence in precious metals as safe-haven assets, driven by macroeconomic factors and geopolitical developments. Investors are closely monitoring these trends as they navigate the evolving financial landscape.
