Precious metals extended their gains on the Multi Commodity Exchange (MCX) during morning trade, driven by value buying and a softer dollar.
MCX gold June futures contracts surged by almost 1% to reach ₹1,43,829 per 10 grams, while silver May futures climbed nearly 2% to ₹2,23,978 per kilogram. The rally reflects renewed investor interest in bullion as an inflation hedge and store of value.
The weakness in the US dollar index played a pivotal role in supporting precious metals prices. A softer greenback makes gold and silver relatively cheaper for international buyers, typically boosting demand and prices in rupee terms for Indian investors.
Market participants are closely monitoring geopolitical tensions, particularly developments in the Israel-US-Iran situation, which continues to influence risk sentiment. Additionally, crude oil price movements remain a key trigger for broader commodity market dynamics.
For Indian investors, the uptick in MCX prices signals potential investment opportunities in precious metals. Gold traditionally serves as a portfolio diversifier during periods of economic uncertainty, while silver benefits from both investment demand and industrial applications.
Analysts suggest tracking the dollar’s movement and geopolitical headlines for further price direction. The morning’s positive sentiment in gold and silver could set the tone for broader commodity market performance in the coming sessions.
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