Gold, silver rise up to 2 pc amid softer dollar and easing crude prices
Mumbai, May 25
Gold and silver prices traded higher on Monday, rising up to nearly 2 per cent, supported by a weaker US dollar and softer crude oil prices as investors assessed prospects of progress in US-Iran peace negotiations.
On the Multi Commodity Exchange (MCX), gold futures (June 5) were trading 0.36 per cent or Rs 566 higher at Rs 1,59,245 at 10:48 am.
The yellow metal touched an intraday high of Rs 1,59,500, up 0.51 per cent or Rs 821 from the previous close of Rs 1,58,679. It recorded an intraday low of Rs 1,59,014, reflecting a gain of 0.21 per cent or Rs 335.
Meanwhile, silver futures (July 3) traded higher, surging nearly 2 per cent or Rs 5,400 to hit an intraday high of Rs 2,77,245 so far.
At the last count, the white metal was trading at Rs 2,76,427, up 1.7 per cent or Rs 4,581. It recorded an intraday low of Rs 2,75,428, still higher by 1.31 per cent or Rs 3,582.
Silver and gold had earlier opened at Rs 2,76,683 and Rs 1,59,150, respectively, on the commodity exchange.
According to commodity market experts, MCX gold continued to trade above the Rs 1,59,000 mark with a cautious-to-mildly positive bias.
"Immediate resistance is seen in the Rs 1,59,500-Rs 1,60,000 range, while a sustained breakout could push prices towards Rs 1,61,000. On the downside, support is placed around the Rs 1,58,000-Rs 1,57,500 levels," they said.
They further said that MCX silver was also holding firm above the Rs 2,76,000 mark amid ongoing volatility, adding that a sustained move above Rs 2,77,000 may support further recovery towards the Rs 2,79,000-Rs 2,80,000 zone, while support is seen near Rs 2,73,000.
"Safe-haven demand and geopolitical developments continue to influence the direction of precious metals," the experts noted.
In the international market too, precious metals traded higher, with COMEX gold rising 0.75 per cent to $4,557.30 per ounce. COMEX silver was trading over 2 per cent higher at $78.015.
In addition, global crude oil prices declined sharply, with international benchmark Brent crude falling 6 per cent to $97.16 a barrel, while US West Texas Intermediate (WTI) crude tanked more than 6 per cent to $90.33.
— IANS
Reader Comments
Silver hitting nearly Rs 2.8 lakh is impressive. My grandmother always said silver is a girl's best friend in India, and with prices like these, maybe it's time to add some more to my collection. But I worry about the volatility for small investors like me.
Interesting correlation between crude oil prices and precious metals. With US-Iran negotiations progressing, the geopolitical risk premium is reducing, which is good for global stability. But let's see how long this rally holds.
Rs 1.6 lakh for 10 grams of gold seems steep, but historically, it's been a good hedge against inflation. That said, I wish the government would reduce import duties to make gold more affordable for weddings and festivals. We're paying way too much in taxes on this.
The technical analysis in this article is quite useful. Breakout above Rs 1,60,000 could be significant for gold. For those of us trading on MCX, these levels are critical. I'm cautiously optimistic but not overleveraging.
Gold has always been a part of every Indian household, not just as an investment but as a cultural asset. However, I worry about the younger generation moving away from traditional assets towards cryptocurrencies. Precious metals will always have intrinsic value, unlike speculative digital tokens. 🙏
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.