Gold jumps Rs 1,000, silver surges Rs 2,500: Why bullion is rallying again, and should you buy?
At around 11:30 am, MCX Gold futures were trading at Rs 1,44,130 per 10 grams, up Rs 1,024 or 0.72%. MCX Silver futures jumped Rs 2,525, or 1.14%, to Rs 2,24,663 per kg.
Gold and silver prices staged a comeback on Monday, with MCX gold rising more than Rs 1,000 and silver climbing over Rs 2,500, as easing geopolitical tensions in the Middle East, a weaker US dollar and falling crude oil prices revived demand for precious metals.
At around 11:30 am, MCX Gold futures were trading at Rs 1,44,130 per 10 grams, up Rs 1,024 or 0.72%. MCX Silver futures jumped Rs 2,525, or 1.14%, to Rs 2,24,663 per kg.
The rally comes after both precious metals corrected from the record highs they hit towards the end of January this year. While the recent decline had prompted some investors to stay on the sidelines, Monday's rebound has once again shifted attention to whether bullion is preparing for another leg higher.
WHY ARE GOLD AND SILVER RISING TODAY?
The biggest trigger for Monday's rally has been a combination of lower crude oil prices and a weaker US dollar.
Global gold prices gained after signs of a pause in Middle East hostilities eased fears of further disruptions to global oil supplies. Iran has indicated it will halt attacks as long as the United States does the same, while Washington has paused its bombing campaign, reducing immediate concerns over an escalation of the conflict.
The development sent crude oil prices tumbling more than 4%, easing inflation worries that had earlier weighed on bullion.
"Gold is a clear beneficiary today of the dual price action in oil and the US dollar," Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters.
The US dollar index also slipped below the 101 mark, making dollar-priced commodities such as gold and silver more affordable for buyers using other currencies and boosting global demand.
A REVERSAL AFTER RECORD HIGHS
Gold and silver have witnessed sharp swings this year.
Both metals touched record highs towards the end of January as investors rushed towards safe-haven assets amid geopolitical uncertainty and expectations that major central banks would eventually begin cutting interest rates.
However, prices later corrected as the conflict in the Middle East pushed crude oil prices sharply higher, fuelling inflation fears and leading markets to believe the US Federal Reserve could keep interest rates elevated for longer. A stronger dollar and rising US Treasury yields also reduced the appeal of non-yielding assets such as gold.
With oil prices now cooling and the dollar weakening, investors have once again returned to precious metals.
ALL EYES ON THE US FEDERAL RESERVE
Markets are also positioning themselves ahead of the US Federal Reserve's policy meeting later this week.
The central bank is widely expected to keep interest rates unchanged, but investors will closely watch its commentary for clues on the future rate path. Any dovish signal could further support gold and silver, while a hawkish stance may cap gains.
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, said that MCX Gold futures have resumed their uptrend after opening with a gap-up and continue to trade comfortably above the 200-day exponential moving average (DEMA) placed at Rs 1,41,241.
He said easing geopolitical tensions, falling crude oil prices and the decline in the dollar index have all contributed to the latest rally. Makda sees immediate resistance for MCX Gold in the Rs 1,44,725-Rs 1,45,670 range.
SHOULD INVESTORS BUY GOLD AND SILVER NOW?
Despite Monday's strong rally, experts believe investors should avoid making decisions based solely on a single day's price movement.
Dr. Renisha Chainani, Head – Research at Augmont, said gold and silver are likely to remain highly sensitive to developments surrounding the US Federal Reserve and geopolitical tensions in the Middle East over the coming weeks.
"A softer tone from the Fed or fresh conflict in the Gulf could bring safe-haven buying back. But if the dollar and Treasury yields continue to rise alongside hawkish Fed comments, prices could remain in a narrow range in the near term," she said.
According to Dr. Chainani, investors should watch key technical levels before making fresh allocations. She sees support for gold in the $3,950-$4,000 per ounce range and resistance around $4,150. If gold sustains above $4,200, it could rally towards $4,500. However, a break below $4,000 could see prices fall towards $3,900.
For silver, she expects support between $56.50 and $57 per ounce, while resistance lies between $61.50 and $63. A decisive breakout above $63 could take silver towards the $70-$71 range, whereas a fall below $55 may drag prices towards $50.
For long-term investors, analysts continue to see a constructive outlook for bullion, supported by central bank buying, geopolitical uncertainty and the prospect of lower interest rates over time. However, given the elevated volatility, staggered investments rather than lump-sum purchases may be a more prudent approach until there is greater clarity on the Fed's policy direction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Gold and silver prices staged a comeback on Monday, with MCX gold rising more than Rs 1,000 and silver climbing over Rs 2,500, as easing geopolitical tensions in the Middle East, a weaker US dollar and falling crude oil prices revived demand for precious metals.
At around 11:30 am, MCX Gold futures were trading at Rs 1,44,130 per 10 grams, up Rs 1,024 or 0.72%. MCX Silver futures jumped Rs 2,525, or 1.14%, to Rs 2,24,663 per kg.
The rally comes after both precious metals corrected from the record highs they hit towards the end of January this year. While the recent decline had prompted some investors to stay on the sidelines, Monday's rebound has once again shifted attention to whether bullion is preparing for another leg higher.
WHY ARE GOLD AND SILVER RISING TODAY?
The biggest trigger for Monday's rally has been a combination of lower crude oil prices and a weaker US dollar.
Global gold prices gained after signs of a pause in Middle East hostilities eased fears of further disruptions to global oil supplies. Iran has indicated it will halt attacks as long as the United States does the same, while Washington has paused its bombing campaign, reducing immediate concerns over an escalation of the conflict.
The development sent crude oil prices tumbling more than 4%, easing inflation worries that had earlier weighed on bullion.
"Gold is a clear beneficiary today of the dual price action in oil and the US dollar," Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters.
The US dollar index also slipped below the 101 mark, making dollar-priced commodities such as gold and silver more affordable for buyers using other currencies and boosting global demand.
A REVERSAL AFTER RECORD HIGHS
Gold and silver have witnessed sharp swings this year.
Both metals touched record highs towards the end of January as investors rushed towards safe-haven assets amid geopolitical uncertainty and expectations that major central banks would eventually begin cutting interest rates.
However, prices later corrected as the conflict in the Middle East pushed crude oil prices sharply higher, fuelling inflation fears and leading markets to believe the US Federal Reserve could keep interest rates elevated for longer. A stronger dollar and rising US Treasury yields also reduced the appeal of non-yielding assets such as gold.
With oil prices now cooling and the dollar weakening, investors have once again returned to precious metals.
ALL EYES ON THE US FEDERAL RESERVE
Markets are also positioning themselves ahead of the US Federal Reserve's policy meeting later this week.
The central bank is widely expected to keep interest rates unchanged, but investors will closely watch its commentary for clues on the future rate path. Any dovish signal could further support gold and silver, while a hawkish stance may cap gains.
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, said that MCX Gold futures have resumed their uptrend after opening with a gap-up and continue to trade comfortably above the 200-day exponential moving average (DEMA) placed at Rs 1,41,241.
He said easing geopolitical tensions, falling crude oil prices and the decline in the dollar index have all contributed to the latest rally. Makda sees immediate resistance for MCX Gold in the Rs 1,44,725-Rs 1,45,670 range.
SHOULD INVESTORS BUY GOLD AND SILVER NOW?
Despite Monday's strong rally, experts believe investors should avoid making decisions based solely on a single day's price movement.
Dr. Renisha Chainani, Head – Research at Augmont, said gold and silver are likely to remain highly sensitive to developments surrounding the US Federal Reserve and geopolitical tensions in the Middle East over the coming weeks.
"A softer tone from the Fed or fresh conflict in the Gulf could bring safe-haven buying back. But if the dollar and Treasury yields continue to rise alongside hawkish Fed comments, prices could remain in a narrow range in the near term," she said.
According to Dr. Chainani, investors should watch key technical levels before making fresh allocations. She sees support for gold in the $3,950-$4,000 per ounce range and resistance around $4,150. If gold sustains above $4,200, it could rally towards $4,500. However, a break below $4,000 could see prices fall towards $3,900.
For silver, she expects support between $56.50 and $57 per ounce, while resistance lies between $61.50 and $63. A decisive breakout above $63 could take silver towards the $70-$71 range, whereas a fall below $55 may drag prices towards $50.
For long-term investors, analysts continue to see a constructive outlook for bullion, supported by central bank buying, geopolitical uncertainty and the prospect of lower interest rates over time. However, given the elevated volatility, staggered investments rather than lump-sum purchases may be a more prudent approach until there is greater clarity on the Fed's policy direction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Gold and silver prices staged a comeback on Monday, with MCX gold rising more than Rs 1,000 and silver climbing over Rs 2,500, as easing geopolitical tensions in the Middle East, a weaker US dollar and falling crude oil prices revived demand for precious metals.
At around 11:30 am, MCX Gold futures were trading at Rs 1,44,130 per 10 grams, up Rs 1,024 or 0.72%. MCX Silver futures jumped Rs 2,525, or 1.14%, to Rs 2,24,663 per kg.
The rally comes after both precious metals corrected from the record highs they hit towards the end of January this year. While the recent decline had prompted some investors to stay on the sidelines, Monday's rebound has once again shifted attention to whether bullion is preparing for another leg higher.
WHY ARE GOLD AND SILVER RISING TODAY?
The biggest trigger for Monday's rally has been a combination of lower crude oil prices and a weaker US dollar.
Global gold prices gained after signs of a pause in Middle East hostilities eased fears of further disruptions to global oil supplies. Iran has indicated it will halt attacks as long as the United States does the same, while Washington has paused its bombing campaign, reducing immediate concerns over an escalation of the conflict.
The development sent crude oil prices tumbling more than 4%, easing inflation worries that had earlier weighed on bullion.
"Gold is a clear beneficiary today of the dual price action in oil and the US dollar," Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters.
The US dollar index also slipped below the 101 mark, making dollar-priced commodities such as gold and silver more affordable for buyers using other currencies and boosting global demand.
A REVERSAL AFTER RECORD HIGHS
Gold and silver have witnessed sharp swings this year.
Both metals touched record highs towards the end of January as investors rushed towards safe-haven assets amid geopolitical uncertainty and expectations that major central banks would eventually begin cutting interest rates.
However, prices later corrected as the conflict in the Middle East pushed crude oil prices sharply higher, fuelling inflation fears and leading markets to believe the US Federal Reserve could keep interest rates elevated for longer. A stronger dollar and rising US Treasury yields also reduced the appeal of non-yielding assets such as gold.
With oil prices now cooling and the dollar weakening, investors have once again returned to precious metals.
ALL EYES ON THE US FEDERAL RESERVE
Markets are also positioning themselves ahead of the US Federal Reserve's policy meeting later this week.
The central bank is widely expected to keep interest rates unchanged, but investors will closely watch its commentary for clues on the future rate path. Any dovish signal could further support gold and silver, while a hawkish stance may cap gains.
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, said that MCX Gold futures have resumed their uptrend after opening with a gap-up and continue to trade comfortably above the 200-day exponential moving average (DEMA) placed at Rs 1,41,241.
He said easing geopolitical tensions, falling crude oil prices and the decline in the dollar index have all contributed to the latest rally. Makda sees immediate resistance for MCX Gold in the Rs 1,44,725-Rs 1,45,670 range.
SHOULD INVESTORS BUY GOLD AND SILVER NOW?
Despite Monday's strong rally, experts believe investors should avoid making decisions based solely on a single day's price movement.
Dr. Renisha Chainani, Head – Research at Augmont, said gold and silver are likely to remain highly sensitive to developments surrounding the US Federal Reserve and geopolitical tensions in the Middle East over the coming weeks.
"A softer tone from the Fed or fresh conflict in the Gulf could bring safe-haven buying back. But if the dollar and Treasury yields continue to rise alongside hawkish Fed comments, prices could remain in a narrow range in the near term," she said.
According to Dr. Chainani, investors should watch key technical levels before making fresh allocations. She sees support for gold in the $3,950-$4,000 per ounce range and resistance around $4,150. If gold sustains above $4,200, it could rally towards $4,500. However, a break below $4,000 could see prices fall towards $3,900.
For silver, she expects support between $56.50 and $57 per ounce, while resistance lies between $61.50 and $63. A decisive breakout above $63 could take silver towards the $70-$71 range, whereas a fall below $55 may drag prices towards $50.
For long-term investors, analysts continue to see a constructive outlook for bullion, supported by central bank buying, geopolitical uncertainty and the prospect of lower interest rates over time. However, given the elevated volatility, staggered investments rather than lump-sum purchases may be a more prudent approach until there is greater clarity on the Fed's policy direction.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
