Gold and Silver Prices Surge After Volatility: What’s Driving the Bullion Rally?

Following last week's significant volatility, the bullion market witnessed a significant rally on Monday. Both gold and silver prices surged simultaneously, creating a stir among investors and traders.

According to information from the bullion market, silver prices surged by ₹14,800 to reach approximately ₹2.65 lakh per kg. Gold prices also rose by approximately ₹3,050 to reach ₹1.58 lakh per 10 grams.

MCX Gold and Silver Prices Today

• MCX Silver Price Update - Silver rose by ₹5,185 to trade at ₹2.49 lakh per kg in early trade on MCX. 
• MCX Gold Price Update - Gold rose by ₹3,428 to reach ₹1.55 lakh per 10 grams.

International Market Impact on Precious Metals

Precious metals also saw strength in Asian markets. Spot gold rose by about 1.18% to $5,040 per ounce. Spot silver gained 3.39% and was trading around $79.89 per ounce. However, despite the current rally, both gold and silver remain below their record highs. Gold is down about 11% from its all-time high, while silver has fallen significantly from its January peak.

Why Gold and Silver Prices Are Rising

According to market experts, expectations for liberal economic policies have increased following the election victory of Japanese Prime Minister Sanae Takaichi. This pressured the yen and investors shifted back to safe-haven investments, supporting gold and silver.

US Economic Data in Focus

Investors are now awaiting employment and inflation data from the US. These data could provide clues to the Federal Reserve's upcoming monetary policy, which will directly impact precious metal prices.

Why Gold and Silver Prices Fell Last Week

Gold and silver prices fell last week due to profit-booking, a stronger dollar, and rising bond yields. However, in the current situation, international political and economic data will determine future movements.