International News
Gold and silver surge to record highs driven by growing expectations of U.S. interest rate cuts
Gold and silver prices soared to new all-time highs in India on Monday, driven by growing expectations of U.S. interest rate cuts in the coming months, which could weaken the dollar. Heightened geopolitical tensions and tariff-led trade concerns further fueled the rally, while robust industrial demand lent additional support to silver, analysts said.
In global markets, gold surged past the $3,750/oz mark, setting a fresh record and edging closer to $3,800, while silver spiked above $44/oz, its highest level in 14 years.
Mirroring the global uptrend and compounded by a weaker rupee, domestic futures hit record levels on MCX: October gold futures neared Rs.1.12 lakh per 10 gm, and December silver futures touched Rs.1.33 lakh per kg, marking historic peaks for both precious metals.
Traders said the momentum is likely to continue in the near term, with festive demand in India potentially adding a further boost to gold consumption. Silver, already buoyed by industrial demand, could see continued investor interest as both a commodity and a hedge.
The US Fed’s 25 basis points rate cut and prospects of additional easing by year-end have boosted sentiment for gold, while a subdued dollar index and weaker rupee added momentum. Persistent central bank purchases, strong ETF inflows, and safe-haven buying have further fuelled the precious metals’ strength,
Industry analysts remain cautiously optimistic, highlighting that while global uncertainties and dovish U.S. monetary expectations are currently propelling prices, sustained volatility cannot be ruled out. Investors are advised to track the upcoming U.S. Federal Reserve policy meetings, global inflation data, and geopolitical developments, all of which will be key in determining the trajectory of precious metals.
International News
MCX Gold, Silver Rise Despite Global Weakness; US Data, Iran Tensions Keep Bullion Markets On Edge
While Domestic Gold and Silver Prices Edged Higher On MCX, International Spot Gold Slipped Amid Uncertainty Over US-Iran Negotiations, Inflation Concerns
Gold and silver prices witnessed mixed momentum on May 28, with domestic futures on the Multi Commodity Exchange (MCX) trading marginally higher even as international spot gold prices remained under pressure. The divergence reflects cautious investor sentiment amid ongoing geopolitical tensions, uncertainty surrounding US-Iran peace negotiations, and expectations of tighter monetary policy in the United States.
MCX gold futures for June delivery rose modestly by Rs. 215 to Rs. 1,57,898 per 10 grams, while silver futures for July delivery gained Rs. 2,000 to trade at Rs. 2,72,628 per kilogram in early trade. The domestic uptick was supported by weakness in the US dollar and cautious positioning ahead of key macroeconomic developments.
However, global spot gold prices extended losses for a second consecutive session as investors remained wary of the inflationary impact of elevated energy prices and the possibility of prolonged geopolitical instability in the Middle East. Analysts noted that fading hopes of a near-term diplomatic breakthrough between the US and Iran have revived concerns around oil supply disruptions, higher crude prices, and inflation risks — factors that continue to influence precious metals.
According to market experts, gold has struggled to regain strong upside momentum despite its safe-haven appeal, as rising US bond yields and a firmer dollar have reduced investor appetite for non-yielding assets like bullion. Silver, meanwhile, remained under pressure globally after recent military developments in southern Iran weakened expectations of an immediate resolution to regional tensions.
Investors are now closely watching key US macroeconomic indicators, including ADP employment figures, GDP growth data, and the Personal Consumption Expenditures (PCE) inflation index — the Federal Reserve’s preferred inflation gauge. These data points are expected to offer fresh direction on the Fed’s interest rate trajectory, which remains a crucial driver for gold and silver prices.
With geopolitical risks still elevated and inflation concerns persisting, bullion markets are expected to remain volatile in the near term as traders await clearer signals on both diplomacy and monetary policy.
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