Stories
Gold and Silver Prices Rise on Safe-Haven Demand and Lower US Yields
- •Gold futures rose 0.30% to $4,193.60 per ounce and silver gained 0.51% to $57.60 per ounce in international markets on Monday.
- •Prices found support from safe-haven buying driven by geopolitical tensions, tech stock sell-offs, and declining US Treasury yields.
- •Domestic gold and silver prices had seen a sharp correction last week, partly influenced by the appreciation of the Indian rupee against the US dollar.
- •Key factors to watch this week include developments around the Strait of Hormuz, US economic data, Federal Reserve policy expectations, and crude oil prices.
- •Market experts note that gold could target $4,200 per ounce if the recovery continues, while silver needs to hold above $56.30 per ounce.
Key Questions Answered
Gold and silver prices have risen in international markets due to safe-haven demand prompted by geopolitical risks, such as tensions around the Strait of Hormuz, concerns over artificial intelligence infrastructure funding, a sell-off in technology stocks, and a decline in US Treasury yields that lowers the opportunity cost of holding non-yielding precious metals.
Movements in the Indian rupee influenced domestic bullion prices independently of international changes. The rupee strengthened from approximately 96.8 to around 94.8 per dollar, reducing the landed cost of imported gold and contributing to the recent decline in domestic prices.
According to RiddiSiddhi Bullions managing director Prithviraj Kothari, gold could move toward $4,200 per ounce, or approximately ₹1.51 lakh per 10 grams, if its recovery continues. Meanwhile, silver needs to hold above $56.30 per ounce, or around ₹2.10 lakh per kg, to target $58.50 an ounce.
