Bargain hunters took charge on the Multi Commodity Exchange on Monday, driving silver futures up 1.70% to ₹1.88 lakh per kilogram as precious metals mounted a sharp recovery from October lows. Gold joined the advance. December gold contracts added ₹1,582—or 1.11%—to trade at ₹1.44 lakh per 10 grams, tracking an overseas rebound across bullion desks.
The bounce snaps weeks of choppy trade. In international markets, spot gold climbed 1.25% to push back above psychological resistance at $4,121.30 per ounce, while foreign silver outpaced bullion peers with a 1.83% leap to $52.89 per ounce. Softer global crude prices took immediate pressure off headline inflation, unlocking room for institutional desks to rebuild depleted positions.
| Contract / Asset | Current Price | Absolute Move | Change (%) |
|---|---|---|---|
| MCX Silver (Dec) | ₹1.88 lakh / kg | +₹3,147 | +1.70% |
| MCX Gold (Dec) | ₹1.44 lakh / 10g | +₹1,582 | +1.11% |
| Spot Gold (Global) | $4,121.30 / oz | — | +1.25% |
| Spot Silver (Global) | $52.89 / oz | — | +1.83% |
Physical demand in domestic retail hubs provided a firm floor as festive buying picked up across India. Yet macro headwinds still loom over the horizon. Stronger-than-expected October US employment prints revived the probability of another Federal Reserve benchmark rate increase in December, forcing traders to balance seasonal momentum against tighter liquidity.
"Gold moving back above the $4,100-per-ounce mark has also been supported by softer crude oil prices, which have eased some inflation concerns and improved the appeal of precious metals," said Gaurav Garg, Head of Research at Lemonn. Garg emphasized that silver's decisive outperformance over gold reflects aggressive discount buying following the October sell-off.
Currency adjustments helped domestic margins. The rupee traded near ₹93.87 against the greenback, drawing strength from lower oil import bills, fresh foreign capital flows, and cooling geopolitical tension.
Commodity traders now await official commentary from Federal Reserve governors, domestic inflation data, and developments across the US-Iran corridor to gauge if this recovery can maintain its momentum into the fiscal close.