Precious metals witnessed a powerful opening in the Indian commodity markets on Monday, with both gold and silver scaling significant heights. The rally was propelled by a combination of a softening US dollar, growing anticipation of an interest rate cut by the US Federal Reserve, and a depreciating Indian rupee.
Futures Market Soars to New Peaks
In early trade, Gold February futures on the Multi Commodity Exchange (MCX) traded at Rs 1,30,383 per 10 grams, marking a sharp gain of Rs 879, or 0.68%. The real star of the session was silver, where March futures surged to a fresh all-time high of Rs 1,78,620 per kilogram, climbing by Rs 3,639. Analysts attributed silver's robust performance to the twin factors of rupee depreciation and the global rate cut narrative, expecting the metal to maintain strong momentum amid ongoing currency fluctuations and economic developments.
Global Context and Market Volatility
On the international front, the picture was mixed but firm. Spot gold was marginally down by 0.2% at $4,221.68 per ounce, after touching a near three-week high in the previous session. Meanwhile, US gold futures for December delivery edged up 0.2% to $4,261.60 per ounce. Silver outperformed globally as well, climbing 2.2% to a fresh peak of $57.59 per ounce. Market experts caution that prices for both metals are likely to stay volatile this week, influenced by movements in the dollar index, global financial market trends, and key upcoming US Federal Reserve policy meetings.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted that safe-haven buying also provided support after trading was halted at the CME due to a data center issue. However, he added that optimism surrounding a potential Russia-Ukraine peace deal limited the gains in the precious metals complex.
City-Wise Gold Rates Show Uniform Uptick
The bullish sentiment in futures translated directly to physical markets across major Indian cities. Here is a snapshot of the gold rates per gram for different purities:
- Delhi: 24K at Rs 13,063, 22K at Rs 11,975, 18K at Rs 9,801.
- Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, Bhubaneshwar: 24K at Rs 13,048, 22K at Rs 11,960, 18K at Rs 9,786.
- Chennai: 24K at Rs 13,167, 22K at Rs 12,070, 18K at Rs 10,065.
- Ahmedabad: 24K at Rs 13,053, 22K at Rs 11,965, 18K at Rs 9,791.
- Jaipur & Kanpur: 24K at Rs 13,063, 22K at Rs 11,975, 18K at Rs 9,801.
Compared to the previous trading day, most cities saw increases of Rs 66 for 24K, Rs 60 for 22K, and Rs 49 for 18K gold. Chennai recorded the highest jump, with 24K gold rising by Rs 98. The consistent upward movement across the country underscores the broad-based demand and the impact of macro-economic factors on domestic bullion prices.
Investors and consumers are advised to stay vigilant as the market braces for a week of potential swings, with all eyes on central bank cues and geopolitical developments.
