Gold and Silver Strengthen as Dollar Weakens and Rates Ease

A dip in the U.S. dollar index and softer expectations for Federal Reserve rate hikes revived interest in safe‑haven assets on Friday. Gold surged past $4,200 per ounce, gaining over 1 % on the COMEX, while silver climbed above $60, posting a 1.9 % increase.

The rally was mirrored in India’s commodity exchanges. MCX’s December gold contract peaked at ₹1,51,200 per 10 gram, rising 1.06 % from the prior close, while silver hit ₹2,24,500 per kilogram, up 1.47 %. By mid‑morning, prices settled at ₹1,51,103 for gold and ₹2,24,321 for silver.

Analysts point to the easing of bond yields and a weaker greenback as primary catalysts. However, they caution that ongoing geopolitical concerns in the Middle East and uncertainty over the Fed’s future policy moves could cause volatility.

With India’s major festivals and wedding season approaching, the demand for gold and silver jewellery is likely to stay robust, offering additional support to price levels.