Gold and silver prices soared to unprecedented levels in the domestic futures market on Monday, propelled by a combination of dwindling physical supply and the intensifying trade tensions between the United States and China. Market experts indicate that gold has already yielded over 61% returns this year, while silver has provided an impressive 75% gain to investors, marking a highly profitable period for precious metal holders.
Surge in Futures Market
Following a dip on Friday, the domestic futures market witnessed a. Solid rebound on Monday, with both gold and silver registering significant gains. Data reveals that gold prices jumped by over 2300 rupees, while silver saw an increase of more than 5800 rupees. On the Multi Commodity Exchange (MCX), gold was trading up by 1,961 rupees at 1,23,325 rupees per ten grams at 10:06 AM, having touched an intra-day high of 1,23,680 rupees. Silver, similarly, climbed by 5,140 rupees to 1,51,606 rupees per kilogram, peaking at 1,52,322 rupees during the trading session.
Analysts attribute this sharp rise primarily to the reduced physical supply of gold and silver, coupled with investors seeking safe-haven assets amidst the US-China trade dispute. Anuj Gupta, Director of Ya Wealth, suggests that this upward trend is likely to continue for some time. He forecasts gold prices to potentially reach 1. 30 lakh rupees and silver to touch 1. 55 lakh rupees by Dhanteras. However, he also noted that the US-China trade standoff isn't expected to persist indefinitely, which could eventually influence price stability.
Key Drivers and Outlook
