Gold and silver prices extended their rally for a third straight session on the Multi Commodity Exchange (MCX) on Friday. Over the three-day period, gold gained nearly Rs 6,500 per 10 grams, while silver surged roughly Rs 13,000 per kilogram. The moves were supported by a weaker US dollar and expectations that longer-term Treasury yields would remain contained.
What drove the rally
The US dollar index softened during the week, making dollar-denominated commodities cheaper for holders of other currencies. At the same time, market participants priced in the likelihood that the Federal Reserve will keep longer-term bond yields under control, reducing the opportunity cost of holding non-yielding assets such as gold.
Geopolitical tensions in the Middle East continued to provide a floor for prices, though the source material notes that the rally occurred despite those tensions, suggesting that macro-economic factors were the primary driver.
Analyst outlook and key levels
Analysts remained bullish on both metals, with attention focused on key support and resistance levels. Uncertainty over the timing and pace of future Fed rate cuts added to the mix, as lower interest rates tend to boost gold’s appeal relative to interest-bearing assets.
For gold on the MCX, traders were watching whether the recent momentum could carry prices above resistance zones that had held in previous weeks. Silver, which has a higher industrial demand component, also benefited from the weaker dollar and the broader risk-on mood in commodities.
Key takeaways
- Gold rose nearly Rs 6,500 per 10 grams on the MCX over three consecutive sessions.
- Silver gained roughly Rs 13,000 per kilogram in the same period.
- A weaker US dollar and expectations of controlled Treasury yields supported the rally.
- Fed rate uncertainty and geopolitical tensions remain in focus for future price direction.
Common questions
Why did gold prices rise despite Middle East tensions?
The rally was driven mainly by a softer US dollar and expectations that the Federal Reserve will keep longer-term Treasury yields subdued. Geopolitical tensions provided a supportive backdrop but were not the primary cause of the gains.
What is the MCX gold price quoted in?
On the Multi Commodity Exchange of India, gold futures are quoted in Indian rupees per 10 grams. Silver futures are quoted in rupees per kilogram.
For the latest updates on precious metal prices, check the live gold price on GoldRate.info.
The three-day surge highlights how quickly sentiment can shift when macro conditions align. Whether the rally extends further will depend on upcoming US economic data and any fresh signals from the Federal Reserve on interest rates.