Silver and Gold Prices Rally in Delhi on Global Support and Dollar Weakness
In a significant surge, silver prices skyrocketed by more than 6 per cent to reach Rs 2.72 lakh per kilogram in the national capital on Monday. Simultaneously, gold prices climbed nearly 1 per cent to Rs 1.58 lakh per 10 grams. This upward movement was primarily supported by firm global trends and a notable weakening of the US dollar, which bolstered the appeal of precious metals as alternative investments.
Detailed Price Movements and Market Analysis
According to local market analysts, silver experienced a sharp increase of Rs 17,000, or 6.66 per cent, settling at Rs 2,72,000 per kilogram, inclusive of all taxes. This marks a substantial rise from Friday's closing level of Rs 2,55,000 per kg. Gold of 99.9 per cent purity also saw gains, rising by Rs 1,300, or 0.83 per cent, to Rs 1,58,500 per 10 grams, inclusive of all taxes. The precious metal had previously settled at Rs 1,57,200 per 10 grams in the prior trading session.
Saumil Gandhi, Senior Analyst -- Commodities at HDFC Securities, commented on the market dynamics, stating, "Gold traded higher on Monday, supported by a pullback in the US dollar and bargain buying. The dollar index is trading lower by almost 0.30 per cent at the 97 level, offering significant support to bullion prices."
He further elaborated that broader global macroeconomic uncertainty, coupled with President Donald Trump's frequent and unpredictable rhetoric on geopolitical and tariff-related issues, continues to underpin safe-haven demand for precious metals. This sentiment is driving investors towards assets like gold and silver as protective measures against market volatility.
International Market Trends and Volatility Factors
In the international market, spot silver advanced by USD 2.19, or 2.81 per cent, to USD 80.21 per ounce, while gold was trading 1 per cent higher at USD 5,012.94 per ounce. Analysts noted that the metals recovered after last week's sharp swings, as traders strategically positioned themselves ahead of key macroeconomic data releases and policy cues.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted the volatility in silver, explaining, "Silver remained more volatile, reflecting speculative flows and short-term profit-booking. Domestic buying interest and international cues lifted prices, while profit-taking was observed near intra-day highs."
Gandhi added that sentiment in precious metals received further support from weekend data out of China. The People's Bank of China extended its gold-buying streak for a 15th consecutive month in January, despite elevated prices, signaling sustained demand from one of the world's largest economies.
Upcoming Economic Data and Market Outlook
On the data front, traders are keenly awaiting the release of closely watched US monthly jobs data, including nonfarm payrolls and the unemployment rate, due on Wednesday. Additionally, US consumer inflation data scheduled for Friday will be closely tracked. Both data sets are expected to influence the direction of the US dollar and provide fresh cues for precious metals markets.
Gandhi emphasized that these upcoming economic indicators could play a crucial role in shaping near-term price movements for gold and silver. Investors are advised to monitor these releases closely, as they may impact global market sentiment and trading strategies in the commodity sector.
