Mumbai, 30 December. On Tuesday, the second trading day of the week, the domestic futures market witnessed a strong rally in gold and silver prices. After a fall from record highs in the previous session, both precious metals saw a significant bounce back.
By the time of reporting, March delivery silver on the Multi Commodity Exchange (MCX) surged by ₹12,298, a rise of 5.48 percent, reaching ₹2,36,727 per kilogram. Meanwhile, February delivery gold rose by ₹1,382 or 1.02 percent to ₹1,36,324 per 10 grams. During the trading session, silver hit an intraday high of ₹2,36,980, and gold reached ₹1,36,403.
Globally, gold prices declined on Monday. Spot gold dropped 4.5 percent to $4,330.79 per ounce, while February delivery US gold futures fell 4.6 percent to close at $4,343.60 per ounce.
Earlier, gold had touched $4,584 per ounce and silver reached $82.67 per ounce during the rally, but both metals could not sustain their gains.
Experts attribute the fall to heavy buying (long positions), margin hikes by the Chicago Mercantile Exchange (CME), and low trading volumes during the holiday period, causing volatility in prices.
However, demand for gold and silver as safe-haven investments remains strong. Tensions involving Russia and Ukraine, as well as between the US and Venezuela, continue to attract investors towards these metals.
According to specialists, silver prices are supported by limited availability and low stock levels in the market. Gold has large reserves, but silver lacks such a substantial stockpile, making its prices more volatile.
Rohit Kalantari, Vice President of Commodities at Mehta Equities Limited, said gold may find support between ₹1,33,550 and ₹1,31,710, with resistance between ₹1,36,850 and ₹1,38,670. For silver, support levels lie between ₹2,19,150 and ₹2,17,780, while resistance is expected between ₹2,26,810 and ₹2,28,970.
A recent report from Motilal Oswal Financial Services highlighted that silver stocks are consistently declining in several major global markets, indicating a tightening supply in the market.
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DBP/VC
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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