Gold and Silver Prices Surge as US Dollar Weakens

A significant jump in gold and silver prices has been observed in both global and domestic markets. According to a report by Sandesh (Business), the demand for precious metals has increased due to the weakening of the US dollar, relief in international geopolitical concerns, and a decline in global crude oil prices. After a prolonged period of decline, a bullish trend was seen again on November 10, the first day of the new year.

In the Indian futures market (MCX), both gold and silver closed strongly at the end of Monday's trading session. MCX Gold futures (December delivery) closed at ₹1,43,166 per 10 grams, and MCX Silver futures closed at ₹1,87,127 per kilogram.

Bullishness was also observed in early Tuesday morning trading on the international market, COMEX. Around 01:00 AM, COMEX Gold was trading at $4,135.2 per ounce with a jump of 0.5%, and COMEX Silver was trading at $53.18 per ounce with an increase of 0.92%.

According to experts, the decline in crude oil prices is the primary reason for this increase. When crude oil is expensive, there is a possibility of rising inflation, which may lead the US Federal Reserve to keep interest rates high. High interest rates prompt investors to reduce investment in gold as gold does not pay any interest. Currently, the weakening of both crude oil and the dollar has supported gold and silver prices.

Gold is a chemical element with the symbol Au and atomic number 79. It is a bright metallic yellow, dense, soft, and malleable metal. It is one of the transition metals and noble metals, being the second least reactive element in the reactivity series after platinum.