Precious metals witnessed a decisive upward swing as the domestic trading week commenced, driven by bottom-fishing after recent sharp selloffs and the arrival of festive season demand. Both gold and silver traded firmly in positive territory on the Multi Commodity Exchange, reflecting a broader sentiment recovery that also spilled over into physical spot markets across the country.
Silver Jumps Over 3,500 Rupees in Heavy Intraday Action
Industrial metal silver led the session's gains with explosive intraday momentum. On the MCX, the December delivery contract commenced trade at 1,81,094 rupees, marking an opening gain of 1,962 rupees or 1.09 percent over its prior close of 1,79,132 rupees. Sustained buying interest throughout the trading hours pushed the contract up by 3,569 rupees during intraday trade, touching a peak of 1,82,701 rupees per kilogram as buyers stepped in aggressively at discounted valuations.
Gold Strengthens as Spot Valuations Hit 1.39 Lakh Level
The yellow metal also enjoyed sustained upward traction from the opening bell. December gold contracts started trading at 1,39,003 rupees per 10 grams, up 518 rupees from the previous settlement mark of 1,38,485 rupees. Accelerating further as the session progressed, prices added 694 rupees, or 0.50 percent, reaching an intraday high of 1,39,179 rupees per 10 grams. In tandem with the futures rally, physical spot gold was quoted at 1.39 lakh rupees per 10 grams.
Overseas Markets Provide Bullish Cues
The domestic upmove mirrored positive price dynamics in overseas commodity exchanges. On Comex, gold advanced by approximately 0.33 percent to trade at 3,911.60 dollars per ounce. International silver logged even more pronounced gains, advancing 2.24 percent to move beyond 50.380 dollars per ounce. Widespread accumulation by global investors across these benchmarks provided the underlying momentum needed to pull Indian bullion rates higher ahead of Dhanteras.
Prices Remain Well Below All-Time Records
Despite Monday's solid rebound, bullion values continue to trade at substantial discounts relative to their historical peaks. Gold remains roughly 28 percent below its lifetime summit. Silver's pullback has been even more severe, currently changing hands at nearly 40 percent below its record valuation. Following weeks of persistent downward pressure, major institutional funds and retail participants viewed the lower price band as an attractive entry point ahead of the festive calendar.
Geopolitical Anxieties and Crude Pressure Fuel Safe-Haven Bids
Market observers point out that the bullion rebound is underpinned by broader macro drivers alongside seasonal domestic factors. Deepening war tensions across West Asia and elevated global uncertainty have renewed investor demand for traditional haven assets. Simultaneously, persistently high crude oil benchmarks have stoked worries over enduring inflation, reinforcing gold and silver's appeal as a hedge against rising costs of living.
Traders Watch US Midterm Dynamics and Federal Reserve Trajectory
Heightened caution ahead of key US midterm elections has further tilted institutional money flows in favour of hard assets. Concerns regarding political realignments and subsequent economic policy shifts have prompted portfolio managers to scale back exposure to volatile equity segments and park capital in precious metals. Over the near term, domestic rate movements will largely track shifts in the US Federal Reserve's monetary path, the trajectory of the dollar index, and fluctuations in American bond yields.
