Gold and Silver Prices Spike Amid Economic Uncertainty

Gold prices soared to a new high, reaching Rs 1.11 lakh per 10 grams on Monday in the domestic futures market. This rise follows global economic trends as investors await crucial US inflation data and insights from Federal Reserve officials on future policy actions.

On the Multi Commodity Exchange, December gold futures climbed by Rs 799 or 0.72%, achieving a milestone of Rs 1,11,750 per 10 grams. Meanwhile, October delivery gold futures rose by Rs 761 or 0.69%, closing at Rs 1,10,608. Silver futures followed suit, reaching unprecedented levels across December and March deliveries.

Weakness in the rupee and cautious sentiments in domestic equity markets buoyed bullion prices. Globally, gold futures saw a considerable increase, reflecting geopolitical tensions, monetary policy expectations, and robust central bank acquisitions. Silver's trajectory was further charged by demand in solar and electronic sectors, underscoring vulnerabilities in supply growth.

(With inputs from agencies.)