Gold and silver prices staged a notable rebound on Monday, recovering from a sharp crash in the previous trading session that had pushed bullion prices to multi-week low levels. This recovery comes amidst a complex market environment where spot gold prices traded lower, while US gold futures climbed and silver prices also rallied significantly.
Market Dynamics and Price Movements
Despite the rebound, overall sentiment for gold and silver prices remains weak, primarily due to a firm US dollar. Investors are closely gauging the potential impact of US President Donald Trump's Federal Reserve chair pick, Kevin Warsh, and his approach to interest rate cuts, which has added uncertainty to the precious metals market.
Detailed Price Analysis
Spot gold price fell by 1.5% to $4,793.97 per ounce, after touching a more than one-week low on Friday. This decline follows a record high of $5,594.82 per ounce that bullion scaled on Thursday, highlighting the volatility in recent sessions. In contrast, US gold futures for February delivery rallied by 1.6% to $4,818.10 per ounce, indicating a divergence between spot and futures markets.
Spot silver price rose by 1.6% to $85.98 an ounce, showing resilience after hitting a record high of $121.64 on Thursday. This rally in silver prices underscores the metal's recovery from the previous downturn.
MCX Gold and Silver Prices in India
In the Indian market, MCX gold rate for April futures ended lower by ₹4,242, or 2.87%, at ₹1,48,104 per 10 grams on Sunday. Meanwhile, MCX silver price for March futures expiry closed at a 9% lower circuit of ₹2,65,652 per kg, down by ₹26,273, reflecting the broader crash before Monday's rebound.
Factors Influencing the Rebound
- Dollar Strength: A firm US dollar continues to weigh on gold and silver prices, making them less attractive to investors holding other currencies.
- Fed Policy Concerns: The uncertainty surrounding Kevin Warsh's potential approach to interest rate cuts as Fed chair has created cautious sentiment.
- Market Corrections: The rebound may be attributed to technical corrections after the sharp decline, with traders capitalizing on lower prices.
Investors and traders are advised to stay updated with live market blogs for the latest developments in gold and silver rates, as prices remain sensitive to global economic indicators and policy shifts.
