Gold prices witnessed a significant surge on the Multi Commodity Exchange (MCX) on Wednesday, rising by Rs 2,200 per 10 grams. The precious metal climbed to Rs 72,500 per 10 grams, driven by a sharp decline in crude oil prices and a weaker dollar. Silver also saw a strong uptick, jumping 3% to Rs 85,000 per kilogram.
Factors Behind the Rally
The rally in gold and silver was primarily attributed to easing crude oil prices, which fell over 2% in international markets. Lower crude oil prices reduce inflationary pressures, making gold a less attractive hedge against inflation in the short term but boosting demand for the metal as a safe-haven asset amid global economic uncertainties. Additionally, a weaker US dollar index, which slipped below 104, provided further support to dollar-denominated commodities like gold.
City-Wise Gold Rates
Here are the latest gold rates (per 10 grams, 24K) in major Indian cities:
- Delhi: Rs 72,600
- Mumbai: Rs 72,500
- Chennai: Rs 72,700
- Kolkata: Rs 72,550
- Bangalore: Rs 72,480
- Hyderabad: Rs 72,520
- Ahmedabad: Rs 72,570
- Jaipur: Rs 72,590
Silver Prices Also Shine
Silver prices also rallied sharply, with MCX silver futures rising 3% to Rs 85,000 per kilogram. In the spot market, silver was trading at Rs 84,800 per kilogram in Delhi and Rs 84,900 in Mumbai. The white metal benefited from the same factors driving gold, along with increased industrial demand amid a recovery in manufacturing activities.
Outlook for Precious Metals
Analysts expect gold to remain volatile in the near term, with key support at Rs 72,000 and resistance at Rs 73,000 per 10 grams. A further decline in crude oil prices and geopolitical tensions could push gold higher. For silver, the next resistance is seen at Rs 86,000 per kilogram. Investors are advised to monitor global cues, including the US Federal Reserve's monetary policy stance and economic data releases.
Overall, the easing of crude oil prices has provided a fresh boost to precious metals, making them attractive investment options amid ongoing market uncertainties.
