Gold & Silver Jump Up To 3% On Weak Dollar & Falling Oil Prices

Mumbai: Gold and silver traded higher on Wednesday, tracking weakness in oil prices and the dollar index, with both precious metals gaining up to 3 per cent. On the Multi Commodity Exchange (MCX), gold futures (June 5) opened at Rs 1,52,000 per 10 grams, up Rs 2,247 or 1.5 per cent from the previous close of Rs 1,49,753. At 11:30 am, gold was trading at Rs 1,52,419, up Rs 2,666 or 1.78 per cent. So far in the session, the yellow metal has touched an intraday high of Rs 1,52,450, up Rs 2,697 or 1.8 per cent.

At the intraday low, it was still trading higher by Rs 1,900 or 1.26 per cent at Rs 1,51,653. Meanwhile, silver futures (July 3) opened at Rs 2,49,316 per kg -- also the intraday low so far -- a jump of Rs 5,000 or 2.04 per cent from the previous close. At the time of filing the report, it was trading at Rs 2,51,699, up Rs 7,383 or 3.02 per cent. In the international market as well, precious metals were trading higher. COMEX gold was up 1.92 per cent at $4,656 per ounce, while silver gained 3.45 per cent to $76.12 per ounce.

Analysts said gold prices edged higher after recovering from a one-month low, supported by easing concerns over US-Iran tensions and some stability in oil prices. However, elevated crude prices and expectations of a prolonged higher interest rate environment continue to cap gains in bullion, they added. In addition, the dollar index slipped 0.34 per cent to 97.97.

The dollar index measures the US dollar’s strength against a basket of six major currencies, the euro, Japanese yen, pound sterling, Canadian dollar, Swedish krona and Swiss franc. Typically, a weaker dollar supports prices of precious metals like gold and silver. On Tuesday, international oil benchmark Brent crude fell 2.30 per cent to $107.33 per barrel, while US West Texas Intermediate crude declined 3 per cent to $99.12 per barrel.

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