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Gold, Silver Prices Surge Up to 3% on Weak Dollar and Oil Drop

Gold and silver prices traded higher on Wednesday, gaining up to 3% due to a weak dollar and falling oil prices. On the MCX, gold futures rose 1.78% to Rs 1,52,419 per 10 grams, while silver futures gained 3.02% to Rs 2,51,699 per kg. Internationally, COMEX gold was up 1.92% at $4,656 per ounce, and silver rose 3.45% to $76.12 per ounce. Analysts noted that easing US-Iran tensions and oil price stability supported the rally, but elevated crude and higher interest rate expectations capped further gains.

Key Points: Gold Silver Prices Gain Up to 3% on Weak Dollar

  • Gold futures up 1.78% to Rs 1,52,419
  • Silver futures gain 3.02% to Rs 2,51,699
  • COMEX gold rises 1.92% to $4,656/oz
  • Dollar index slips 0.34% to 97.97
2 min read

Gold, silver prices gain up to 3 pc on weak dollar, oil prices

Gold and silver prices rose up to 3% on Wednesday, tracking a weak dollar and falling oil prices. MCX gold hit Rs 1,52,450 per 10 grams.

"elevated crude prices and expectations of a prolonged higher interest rate environment continue to cap gains in bullion - Analysts"

Mumbai, May 6

Gold and silver traded higher on Wednesday, tracking weakness in oil prices and the dollar index, with both precious metals gaining up to 3 per cent.

On the Multi Commodity Exchange (MCX), gold futures (June 5) opened at Rs 1,52,000 per 10 grams, up Rs 2,247 or 1.5 per cent from the previous close of Rs 1,49,753.

At 11:30 am, gold was trading at Rs 1,52,419, up Rs 2,666 or 1.78 per cent. So far in the session, the yellow metal has touched an intraday high of Rs 1,52,450, up Rs 2,697 or 1.8 per cent. At the intraday low, it was still trading higher by Rs 1,900 or 1.26 per cent at Rs 1,51,653.

Meanwhile, silver futures (July 3) opened at Rs 2,49,316 per kg -- also the intraday low so far -- a jump of Rs 5,000 or 2.04 per cent from the previous close. At the time of filing the report, it was trading at Rs 2,51,699, up Rs 7,383 or 3.02 per cent.

In the international market as well, precious metals were trading higher. COMEX gold was up 1.92 per cent at $4,656 per ounce, while silver gained 3.45 per cent to $76.12 per ounce.

Analysts said gold prices edged higher after recovering from a one-month low, supported by easing concerns over US-Iran tensions and some stability in oil prices.

However, elevated crude prices and expectations of a prolonged higher interest rate environment continue to cap gains in bullion, they added.

In addition, the dollar index slipped 0.34 per cent to 97.97. The dollar index measures the US dollar's strength against a basket of six major currencies, the euro, Japanese yen, pound sterling, Canadian dollar, Swedish krona and Swiss franc.

Typically, a weaker dollar supports prices of precious metals like gold and silver.

On Tuesday, international oil benchmark Brent crude fell 2.30 per cent to $107.33 per barrel, while US West Texas Intermediate crude declined 3 per cent to $99.12 per barrel.

- IANS

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Reader Comments

P
Priya S
As someone who works in a jewellery store in Mumbai, I can tell you customers are rushing to buy even at these high prices. Wedding season is approaching and no one wants to postpone purchases. The weak dollar is definitely helping but I think domestic demand is playing a bigger role. Just hope this isn't a temporary spike.
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Michael C
Interesting correlation between oil prices and gold. When oil drops, gold usually gains as investors shift assets. The dollar index falling to 97.97 is also significant. But with the US Fed likely keeping rates high for longer, I'm not sure this rally will sustain. Would be cautious about jumping in now.
K
Kavya N
My father always says gold is the only investment that never betrays you. 😊 With silver also up 3%, I'm thinking of diversifying a bit. But at ₹2.5 lakh per kg, silver seems even more expensive than last year. The article mentions analysts being cautious about high interest rates - I think they're right to be careful.
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Ravi K
As a small investor from Bangalore, I'm watching these movements closely. The ₹1,52,419 price for gold is tempting but I remember when it was under ₹1 lakh just a few years ago. The article mentions US-Iran tensions easing - that's good for stability but doesn't explain why prices are still rising. Something doesn't add up.

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