Gold and Silver This Evening: Precious metals surge by up to Rs 1,300—What’s powering the rally?

Silver Prices: On the Multi Commodity Exchange (MCX), silver December contracts rose 1.03 per cent to Rs 1,48,884 per kg during the day. The white metal is trading at Rs 1,48,675 per kg, up 0.92 per cent and previously closed at Rs 1,47,321 per kg, and since then, prices have risen by nearly Rs 1,300 so far.

Silver in international market trading around $48.59 per troy ounce with a rise of 0.78 per cent.

Gold extends gains

Add Zee Business as a Preferred Source

The yellow metal is currently trading around Rs 1,21,185 per 10 grams, up 0.55 per cent for the day. Gold began to pick up momentum from 12:18 pm, after trading earlier at Rs 1,20,644.

Since then, it has continued to strengthen, hitting an intraday high of Rs 1,21,550.

Gold also extended its gains after a weak start to the week, as traders looked for cues from the US economic data and global currency movements.

While gold in USD values at $4,011.18 with a 0.69 per cent up today. Whereas, the prices of yellow metal has seen a decline by 1.60 per cent in last 30 days.

Market sentiment

The US dollar index slipped about 0.20 per cent but remained above the 100-mark, hovering near a four-month high, which limited the upside in bullion. Meanwhile, US 10-year Treasury yields stayed just below their highest level in nearly a month, adding pressure on non-yielding assets like gold and silver.

How political uncertainty supports gold-silver demand?

“Gold and silver prices rebounded from a one-week low, supported by safe-haven buying amid rising political uncertainty in the United States. The US President's party losing the New York City mayoral elections has heightened concerns ahead of the upcoming mid-term polls," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Strong physical demand from China and Australia also provided support to precious metals, he added, IANS reported.

Kalantri further pointed out that strong physical demand from China and Australia also provided additional support to bullion prices.

Technical Outlook

Analysts have identified the support level for gold at Rs 1,19,870–1,19,280, while the resistance level is at Rs 1,21,090–1,21,600, which is quite close to the previous one. Silver is likely to be the most volatile among the precious metals this week. Traders will be closely watching the dollar index, global bond yields, and US employment data for further cues.

Experts suggests gold and silver might have volatile trading but still be strong if the demand for safe-havens continues due to global geopolitical and political uncertainties.