Editor’s Note
This article highlights a significant surge in precious metals, with silver prices in Delhi rallying sharply on Monday. The movement reflects broader global trends and currency shifts, underscoring the dynamic nature of commodity markets.
On the first trading day of the week, Monday, a massive rally was witnessed in silver prices in Delhi’s bullion market. Due to the surge in global markets and a weakening US dollar, the prices of the white metal, silver, have started soaring in the domestic market. On Monday, silver prices recorded a hefty increase of ₹17,000 per kilogram in a single day. Meanwhile, gold prices also maintained an upward trend, crossing the level of ₹1.58 lakh. Market experts believe this rally is due to increased demand for precious metals as a safe investment.
According to market data, on Monday, silver prices jumped 6.66 percent to reach ₹2.72 lakh per kilogram. Its closing price on Friday was ₹2.55 lakh per kilogram, which saw an increase of ₹17,000 today. Similarly, the price of 99.9 percent pure gold also increased by ₹1,300, reaching the level of ₹1.58 lakh per 10 grams. In the previous session, gold had closed at ₹1.57 lakh.
A major reason for this rally in precious metals is the weakness seen in the US dollar. The Dollar Index fell 0.30 percent to the 97 level, providing support to bullion prices. Saumil Gandhi explained that global macroeconomic uncertainty and the continuous rhetoric from US President Donald Trump on geopolitical and tariff-related issues have also turned investors towards safe investments. Whenever an atmosphere of uncertainty is created in the global economy, investors consider investing in gold and silver safer than risky options like the stock market.
China also has a significant hand in strengthening market sentiment. According to data, the People’s Bank of China continued its gold purchases for the 15th consecutive month in January. Despite high prices, the Chinese central bank increasing its gold reserves is a positive signal for global investors.
Market experts say that in the coming days, US economic data will determine the movement of gold and silver. Traders are eagerly awaiting the US monthly employment data to be released on Wednesday. In addition, US consumer inflation data is also set to be released on Friday. According to HDFC Securities, both these reports will play an important role in determining the direction of the dollar and will provide new cues for precious metals. If inflation figures come in lower or higher than expected, there could be a possibility of a change in policies regarding the Federal Reserve’s interest rates, which will have a direct impact on gold and silver prices.