Gold and silver prices in India experienced a notable rally today, driven by positive global cues and easing concerns over US economic data.
MCX gold futures surged nearly 1%, crossing the Rs 1,58,400 mark, marking a significant increase. Meanwhile, MCX silver outperformed, climbing close to 3% and reclaiming the Rs 2.60 lakh level.
Globally, spot gold prices firmed above $5,040 per ounce, hovering near a two-week high. Silver also saw a strong rebound, nearing $83 per ounce after recording substantial losses in the previous session.
The rally was fueled by investor optimism following softer US economic indicators. December retail sales fell short of expectations, indicating a slowdown in consumer spending and raising concerns about economic growth. As a result, markets have now priced in a higher likelihood of three Federal Reserve rate cuts this year, compared to two just a week ago.
Investors are closely monitoring upcoming US jobs and inflation reports for further clues on the Fed’s monetary policy. Additionally, strong demand from central banks supported the rally, with the People’s Bank of China extending its gold purchases for the 15th consecutive month in January.
Geopolitical tensions also contributed to the price rise, with ongoing US-Iran tensions keeping markets cautious despite positive initial talks last week, according to Trading Economics.
