Gold and silver prices climbed sharply on Monday, gaining up to 2.3 per cent on the Multi Commodity Exchange (MCX), as softer crude oil prices, a retreat in the US dollar and improved investor sentiment lifted demand for precious metals.
MCX gold futures for December 4 delivery rose as much as 1.29 per cent, or Rs 1,848, to touch an intraday high of Rs 1,44,400 per 10 grams. At around 12:55 p.m., gold was trading at Rs 1,43,700, up Rs 1,148, or 0.81 per cent, from its previous close.
Silver futures for December 4 delivery advanced 2.32 per cent, or Rs 4,299, to reach an intraday high of Rs 1,89,399 per kg. The metal was later trading at Rs 1,86,840 per kg, gaining Rs 1,740, or 0.94 per cent.
Market experts attributed the rally to easing crude oil prices, which helped moderate inflation concerns, and a weaker US dollar that made dollar-denominated bullion more attractive to investors.
In international trade, COMEX gold gained around 1 per cent to nearly $4,130, while silver advanced approximately 2 per cent to $53.10, outperforming gold.
Investors are expected to track geopolitical developments, Russia-Ukraine peace talks, crude oil movements, US inflation figures and signals from the Federal Reserve for further direction.
On the domestic market, experts identified immediate support for MCX gold at Rs 1,43,000-Rs 1,43,700 and resistance at Rs 1,45,300-Rs 1,46,000. A sustained move above Rs 1,46,000 could extend the recovery, while a decisive fall below Rs 1,43,000 may expose the metal to further losses.
For silver, support is placed at Rs 1,86,000-Rs 1,88,000, with resistance at Rs 1,94,000-Rs 1,96,000. A sustained move above Rs 1,96,000 could strengthen the rally, while a break below Rs 1,86,000 may lead to a retreat towards Rs 1,80,000.
Experts described the near-term outlook for both metals as cautiously constructive, while warning that elevated US Treasury yields and expectations of a Federal Reserve rate hike in December could restrict further gains.
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