The domestic commodity market witnessed a solid recovery in precious metal prices on Friday, as gold and silver bounced back from their recent lows on the Multi Commodity Exchange (MCX). According to market data, gold futures for April delivery surged by approximately ₹1,700, reaching a level of ₹1,53,199 per 10 grams. Silver followed a similar trajectory, exhibiting an even more pronounced jump. March silver futures rose by more than ₹6,100, trading at ₹2,37,613 per kilogram. This recovery comes after a period of intense selling pressure where investors had liquidated positions to raise cash.
Detailed Breakdown of MCX Futures Prices
Trading activity on the Multi Commodity Exchange showed a significant uptick in volume as prices stabilized, while the April 2024 gold contract reached the ₹1,53,199 mark, reflecting renewed buying interest. In the silver segment, the volatility was even more evident, while the March futures, which had seen a sharp correction in the previous session, recovered to trade at ₹2,37,613 per kilogram. Market observers attribute this bounce to short covering by traders who had previously bet on lower prices. The movement on MCX reflects a broader trend of stabilization across the bullion complex after a week of high volatility.
Purity-Based Gold Rates in the Domestic Market
In line with the movements in the futures market, the rates for different purities of gold have been updated in the physical and retail markets. 24-carat gold, the highest purity available, is currently benchmarked around ₹1,53,199 per 10 grams based on futures trends. For jewelry purposes, 22-carat gold is priced at ₹1,41,350 per 10 grams. Meanwhile, 18-carat gold, often used for diamond-studded jewelry, stands at ₹1,15,650 per 10 grams. It's important to note that these rates are exclusive of local taxes, GST, and making charges, which vary across different states and retail outlets in India.
International Market Dynamics and Global Spot Prices
The recovery in the Indian market is closely linked to positive cues from international exchanges. On the global front, gold futures for April delivery were seen trading near $4,944 per ounce. Spot silver also recorded a gain of over 2% after having plunged nearly 11% in earlier sessions. The global bullion market has been reacting to fluctuations in the US Dollar Index and treasury yields. As the dollar showed signs of stabilization, precious metals found a floor, leading to the current recovery. International spot prices remain a key driver for domestic landed costs in India.
Factors Influencing the Recent Volatility in Bullion
Several macroeconomic factors have contributed to the recent price swings in the gold and silver markets. According to market reports, the initial drop was triggered by a rush for liquidity among global investors. However, as prices hit technical support levels, value buying emerged. The ongoing geopolitical tensions and uncertainty surrounding central bank interest rate trajectories continue to provide a backdrop for gold's appeal as a safe-haven asset. On top of that, domestic demand in India, particularly ahead of the wedding season, remains a significant factor supporting the price levels at lower points.
Technical Aspects of Commodity Trading and Delivery Cycles
Trading on the MCX involves specific contract cycles that influence price behavior. Currently, the April and June gold contracts are seeing the most significant open interest. In the silver market, the March contract is approaching its expiry, leading to increased volatility as traders roll over their positions to May. Technical data suggests that if the current momentum continues, gold may face its next resistance near the ₹1,54,000 level. For silver, the ₹2,42,000 per kilogram mark is being watched as a crucial technical threshold. These prices are subject to real-time changes based on global supply-demand dynamics and currency fluctuations.