Silver prices rebounded sharply by Rs 3,500 per kg and gold gained Rs 200 per tola in the Delhi bullion market on Tuesday, tracking positive global cues and strong demand from jewellers and investors.
Silver Leads the Rally
Silver prices surged Rs 3,500 to close at Rs 77,500 per kg, recovering from recent losses. The white metal had witnessed a downturn in the previous sessions due to profit-booking by traders.
Gold Edges Higher
Gold prices rose Rs 200 to Rs 52,800 per 10 grams (99.9% purity) in the national capital. The yellow metal also gained Rs 250 to Rs 54,800 per 10 grams for 99.9% purity.
Factors Behind the Rise
The uptick in precious metals was driven by a weak US dollar and rising geopolitical tensions, which boosted safe-haven demand. Additionally, positive economic data from China supported industrial demand for silver.
- Global Cues: International gold prices edged up as the dollar index softened, making dollar-denominated commodities cheaper for holders of other currencies.
- Domestic Demand: Physical buying picked up ahead of the wedding season, with jewellers replenishing inventories.
Market Outlook
Analysts expect precious metals to remain volatile in the near term, with investors awaiting key US inflation data for further direction. The Federal Reserve's policy stance will also influence price movements.
In other news, platinum rose Rs 100 to Rs 30,800 per 10 grams, while palladium remained flat at Rs 40,200 per 10 grams.
