Gold and Silver Prices Rally Amid Weakening US Dollar
Gold and silver prices rose globally on Monday as a weakening US dollar and easing US-Iran tensions drove investor demand for precious metals.
Global gold and silver prices rallied up to 2 percent on Monday, driven by a retreat in the US dollar, falling crude oil prices, and increased demand for safe-haven assets. On the Multi Commodity Exchange in India, gold futures hit an intraday high of Rs 1,44,400 per 10 grams, while silver reached Rs 1,89,399 per kg. Internationally, COMEX gold rose to nearly $4,130 and silver climbed to approximately $53.10.
Regional markets saw similar gains. In Dubai, 24-karat gold reached Dh496.75 per gram, a 5.6 percent increase over the previous week. In Syria, the selling price for 21-karat gold rose by 250 Syrian pounds to 17,000 pounds. Analysts attribute the rally to a softer dollar making bullion cheaper for international buyers, as well as a probe into Nvidia's CEO and diplomatic efforts to end the US-Iran conflict.
Donald Trump contributed to the downward pressure on crude oil prices by indicating that further military strikes against Iran were highly unlikely, reducing concerns over supply disruptions. However, the rally faces headwinds from strong US October job growth and a decline in unemployment to 4.1 percent. These economic indicators have reinforced expectations that the Federal Reserve will implement a rate hike in December, a move that typically pressures non-yielding assets like gold.
