Gold and Silver Futures See Significant Rally

Gold prices for June futures on the Multi Commodity Exchange (MCX) witnessed a significant rally on Monday, soaring by Rs 1,500 or 1.4 per cent to reach an all-time high of Rs 96,747 per 10 grams. Silver May futures also followed suit, rising by Rs 693 or 0.73 per cent to settle at Rs 95,730 per kilogram.

Global Factors Driving the Surge

The surge comes after a muted performance last Thursday when the domestic market closed. In the international commodity markets, gold prices soared to an unprecedented high of over $3,385 per ounce. This spike was fueled by a confluence of factors including a weakening US dollar, escalating trade tensions between the US and China, and rising concerns over central bank independence.

Investor Sentiment and Market Volatility

Investor sentiment was further stirred by US President Donald Trump’s public criticism of the Federal Reserve and consideration of removing Fed Chair Jerome Powell. Trump’s call for interest rate cuts added to market anxiety. Meanwhile, Federal Reserve Bank of Chicago President Austan Goolsbee warned against political interference in the central bank's autonomy.

Physical Gold Market Rates in Indian Cities

In Delhi, standard gold of 22 carat quality is priced at Rs 58,432 for 8 grams, whilst pure gold of 24 carat quality costs Rs 62,296 for 8 grams. The Mumbai market shows standard gold (22 carat) valued at Rs 56,704 for 8 grams, with pure gold (24 carat) priced at Rs 60,416 for 8 grams.