Gold, Silver Prices Surge: Will Momentum Continue Amid Global Cues and Domestic Buying?

• Gold and silver prices on MCX saw a sharp jump due to strong global cues, a weakening US dollar, and renewed domestic buying.
• MCX Gold April contract rose by approximately ₹7,000 (4.5%) to ₹1.60 lakh per 10 grams; MCX Silver March contract increased by over ₹16,000 (6%) to ₹2.84 lakh per kg.
• Globally, spot gold rose over 2% as the dollar weakened, making bullion more attractive; silver also performed well.
• The surge is attributed to bargain hunting after a 15% gold price drop, a weaker dollar, and silver's dual role as precious and industrial metal.
• Physical gold buying is strong in Shenzhen before Lunar New Year, and China's banks tightened controls on gold investment products to curb volatility.

Why It Matters: Gold and silver prices surged on global cues and domestic buying, but sustained recovery depends on demand and market stability.