Gold and Silver Prices Rebound Strongly as Global Market Sentiment Improves

Gold and silver prices continued their upward momentum for a third straight trading session, with both precious metals recording sharp gains in domestic and global markets. Improving investor confidence, a weaker US dollar and changing global economic expectations have helped drive renewed buying interest.

On the Multi Commodity Exchange, gold futures for October delivery rose by Rs 757 to trade around Rs 1.49 lakh per 10 grams, while silver futures for September delivery gained Rs 228, reaching nearly Rs 2.27 lakh per kilogram. Over the past three trading sessions, gold has appreciated by more than Rs 6,000, while silver has surged by almost Rs 11,000.

Internationally, spot gold was trading near 4,257 US dollars per ounce, while spot silver stood at 61.83 US dollars per ounce. Reflecting global trends, the Hyderabad bullion market quoted 10 grams of pure gold at around Rs 1.52 lakh including taxes, while silver was priced close to Rs 2.31 lakh per kilogram. The rupee was trading at around 95.23 against the US dollar.

Market analysts attribute the latest rally to improving geopolitical conditions in West Asia. Recent progress in discussions involving Iran and Oman over the reopening of the Strait of Hormuz has eased concerns over energy supplies, leading to a decline in crude oil prices. Brent crude has once again fallen below 80 dollars per barrel, improving overall market sentiment.

Another major factor supporting precious metals is the weakening of the US dollar and softer Treasury yields. Investors are also increasingly expecting major central banks to refrain from further interest rate hikes in the near term. These developments have boosted the appeal of gold and silver as preferred investment assets.

Earlier, precious metal prices had fallen sharply amid concerns over the conflict involving the United States and Iran, with gold declining nearly 19 percent from its recent highs. As geopolitical risks ease and financial markets stabilise, buying interest has returned, pushing both gold and silver prices higher once again.