Gold and Silver Prices Surge: Gold Rises ₹2200, Silver Jumps Sharply

The Indian bullion market experienced an unprecedented surge in the prices of precious metals on Monday, the first trading day of the week. As soon as trading commenced on the Multi Commodity Exchange (MCX), a sharp upward trend was observed in both gold and silver rates, surprising market analysts and buyers alike. According to reports, the price of 24-carat gold increased by ₹2200 per 10 grams, while silver prices recorded a historic single-day jump of over ₹12000 per kilogram. This spike comes at a time when the wedding season in India is at its peak, leading to a consistent rise in jewelry demand.

Detailed Price Breakdown on MCX

On Monday morning, the Multi Commodity Exchange (MCX) witnessed intense activity in silver prices. At 9:05 AM, silver reached the level of ₹262497 per kilogram, marking a massive increase of ₹12605. Regarding gold, the prices climbed by approximately ₹2200 compared to the previous trading session, bringing the rate of 24-carat gold to ₹157655 per 10 grams. Also, proportional increases were noted in other variants of gold; 22-carat gold was recorded at ₹144037 per 10 grams, while 18-carat gold reached ₹117848 per 10 grams.

Impact of Global Factors and Dollar Weakness

According to market analysts, the position of the US Dollar in the international market and ongoing geopolitical tensions have Notably influenced the prices of the yellow metal. The weakness in the US Dollar Index has prompted investors to shift their focus toward gold and silver as safe-haven assets. Historically, whenever there is economic uncertainty or geopolitical instability at the international level, investors tend to prioritize the bullion market over riskier options like the stock market, while this global trend is directly reflecting on the price movements within the Indian domestic market.

Domestic Demand and Wedding Season Contribution

India is currently in the midst of the traditional wedding season, which is a primary driver for gold and silver demand in the country. Jewelers suggest that the widening gap between demand and supply has also played a role in pushing prices higher. Major bullion hubs like Delhi and Mumbai are reporting high footfall, indicating a sudden surge in physical gold demand. Analysts believe that the combination of rising domestic consumption and disruptions in the international supply chain has paved the way for this substantial price hike.

Expert Analysis and Market Sentiment

Bullion experts state that the jump of over ₹12000 in silver is one of the largest single-day gains seen in recent months. Prominent jewelers in Delhi noted that such a sharp increase was unexpected for the market. According to analysts, technical factors are also at play, as buying accelerated after several resistance levels were breached. However, this sudden price hike has caused concern among consumers who had planned purchases for upcoming weddings. Many buyers are now adopting a wait-and-watch approach, hoping for a market correction or price stabilization.

Conclusion and Market Outlook

The current surge in gold and silver prices represents a significant development for the Indian commodity market. While global economic conditions are providing support to the prices, domestic demand has added further momentum. According to analysts, the future direction of the market will depend on the policies of international central banks and global inflation data. For now, the bullion market continues to trade at elevated levels, with all eyes on the next set of signals from the global markets.