Precious metals witnessed a powerful opening in the Indian commodity markets on Monday, with both gold and silver futures climbing to significant highs. The rally was fueled by a combination of a softening US dollar, growing anticipation of an interest rate cut by the US Federal Reserve, and a weaker Indian rupee against the dollar.
Futures Market Rally and Key Drivers
In early domestic futures trading, Gold February futures traded higher by Rs 879, or 0.68%, reaching Rs 1,30,383 per 10 grams. The star performer, however, was silver. Silver March futures surged by Rs 3,639 to hit a fresh peak of Rs 1,78,620 per kilogram. Market analysts pointed to the dual support of rupee depreciation and US monetary policy expectations for silver's robust performance.
On the international front, the momentum was mixed but positive. While spot gold edged down 0.2% to $4,221.68 per ounce after a strong previous session, US gold futures for December delivery rose 0.2% to $4,261.60. Silver outperformed globally as well, climbing 2.2% to a new high of $57.59 per ounce.
Expert Outlook and Influencing Factors
Market experts predict a week of volatility for precious metal prices. Movements are expected to be heavily influenced by fluctuations in the dollar index, trends in global financial markets, and crucial upcoming US Federal Reserve policy meetings. Gold recently touched five-week highs, while silver sprinted to record levels, primarily on the back of US rate cut speculation and profit-taking in the dollar.
Manoj Kumar Jain of Prithvifinmart Commodity Research highlighted additional factors. "Safe-haven buying also emerged for precious metals after trading was halted in the CME due to overheating at its data center," he stated, according to PTI. However, he added that "optimism over a Russia-Ukraine peace deal limited gains in precious metals."
City-Wise Gold Rates in India
Retail gold prices across major Indian cities followed the upward trend on Monday. Here is a snapshot of the rates for different purities:
Delhi: 24K gold traded at Rs 13,063/gm (up Rs 66), 22K at Rs 11,975/gm (up Rs 60), and 18K at Rs 9,801/gm (up Rs 49).
Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, Bhubaneshwar: 24K gold was priced at Rs 13,048/gm (up Rs 66), 22K at Rs 11,960/gm (up Rs 60), and 18K at Rs 9,786/gm (up Rs 49).
Chennai: Saw the highest increases, with 24K at Rs 13,167/gm (up Rs 98), 22K at Rs 12,070/gm (up Rs 90), and 18K at Rs 10,065/gm (up Rs 70).
Jaipur & Kanpur: 24K gold traded at Rs 13,063/gm (up Rs 66), 22K at Rs 11,975/gm (up Rs 60), and 18K at Rs 9,801/gm (up Rs 49).
Ahmedabad: 24K gold stood at Rs 13,053/gm (up Rs 66), 22K at Rs 11,965/gm (up Rs 60), and 18K at Rs 9,791/gm (up Rs 49).
The consistent gains across cities underscore the broad-based bullish sentiment for gold in the Indian market, driven by both international cues and local demand dynamics.
