Mumbai, March 20: Gold and silver prices witnessed a significant surge on Friday, with both precious metals rising by up to 2.83 percent. At 10:10 AM on the Multi Commodity Exchange (MCX), the April 2 gold contract was up by 2.07 percent or ₹2,996, trading at ₹1,47,950. During the trading session, gold touched a low of ₹1,47,401 and a high of ₹1,48,302.
The May 5 silver contract saw an increase of 2.83 percent or ₹6,540, reaching ₹2,38,000. silver’s trading range included a low of ₹2,37,300 and a high of ₹2,40,000.
International markets also reflected a rise in gold and silver prices. As of the time of writing, gold on COMEX was up by 2.40 percent at $4,716 per ounce, while silver rose by 3.61 percent to $73.78 per ounce.
Manav Modi, a commodities analyst at Motilal Oswal Financial Services Limited, noted that while gold prices stabilized in early trading, they are heading towards their worst weekly decline in six years. He attributed the recent drop in gold prices to rising inflation expectations amid the ongoing U.S.-Israel conflict with Iran, along with reduced prospects for interest rate cuts in the near future.
According to the analyst, the demand for gold as a safe investment has been significantly dampened by a sharp increase in the U.S. dollar and treasury yields. Additionally, oil prices have surged to nearly four-year highs during the week due to ongoing attacks on energy infrastructure in the Middle East, raising concerns about supply disruptions and high inflation.
On Thursday, gold and silver experienced a substantial decline, with gold prices falling to approximately ₹1.44 lakh per 10 grams and silver to ₹2.20 lakh per kilogram.