Gold and silver prices recorded a notable increase over the past week amid global economic and geopolitical developments. Rising investor interest and signals from international markets supported the performance of both precious metals.
Prices of gold and silver have risen sharply in response to changing global market conditions. Over the past week, silver prices increased by approximately ₹13,000 per kilogram, while gold prices rose by around ₹3,000 to ₹3,500.
Global economic uncertainty, geopolitical tensions, and volatility in equity markets have led investors to shift towards safe-haven assets such as gold and silver. Weakness in the US dollar and uncertainty surrounding interest rates have also supported prices.
MCX and international price levels
On the Multi Commodity Exchange (MCX), gold prices reached approximately ₹1,52,690 per 10 grams, reflecting an increase of about ₹3,000 to ₹3,500 compared with the previous week. Silver prices showed a sharper rise, reaching ₹2,43,274 per kilogram on MCX, marking an increase of around ₹13,000 over the same period.
In international markets, a similar trend was observed. On COMEX, gold closed at approximately $4,787 per troy ounce, while silver was around $76.48 per troy ounce.
Drivers of price movement
According to experts, multiple global factors have contributed to the recent increase. These include easing tensions between the United States and Iran and expectations of a possible diplomatic resolution. While this has raised expectations of reduced market instability, investors have increased allocations to safe-haven assets such as gold and silver.
Declining crude oil prices have also influenced the market. Lower oil prices reduce inflationary pressure globally and increase expectations of changes in central bank policies.
Impact of dollar weakness and rate expectations
Weakness in the US dollar has been a key factor supporting gold and silver prices. A weaker dollar makes these metals cheaper for investors holding other currencies, increasing demand. Expectations of potential interest rate cuts by the US Federal Reserve have also supported prices. Lower interest rates reduce the attractiveness of fixed-income instruments such as bonds, prompting investors to move towards gold and silver.
Silver outperformed gold during the week, rising approximately 4.8 percent. Increased industrial demand contributed to this trend, as silver is widely used in electronics, solar panels, and other industrial sectors.
