Gold Hits Strong Rally on MCX as Silver Surges: Strong Safe-Haven Demand Drives Prices Up

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Gold and silver prices went up sharply on the Multi-Commodity Exchange on Wednesday morning. After several days of spikes and dips, buyers returned to the bullion market. The fall in the US dollar and rising global worries helped lift prices.

Gold April contracts on MCX rose by nearly Rs. 7,000. A growth of by 4.5% to Rs. 1,60,755 per 10 grams was noticed. Silver March contracts jumped by over Rs. 16,000. Prices moved up by nearly 6% to Rs. 2,84,094 per kilogram.

Fresh Buying Lifts Bullion After Recent Fall

Both metals had fallen sharply in the last few trading sessions. Many investors stayed on the sidelines during the fall. Fresh buying started once prices reached lower levels. This buying helped gold and silver recover quickly.

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Global markets also supported the rise. International gold prices gained over 2%. The US dollar turned weak after traders booked profits. Earlier, the dollar had gained on strong US economic data and steady interest rates from the US Federal Reserve.

Weak Dollar and Global Tensions Support Prices

A weak dollar usually supports gold and silver prices. It makes bullion cheaper for buyers in other countries. This increases demand in global markets and supports prices.

Safe-haven demand also played a key role. Ongoing global tensions pushed investors toward safer assets like gold and silver. Concerns around global politics and government finances added to the demand.

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Market experts said recent US policy news has already settled in the market. The nomination of a new US Federal Reserve Chairman had earlier caused uncertainty. Investors now focus on inflation risks and global stability.

Key Levels and Outlook for Gold and Silver

In the Indian market, experts pointed out important price levels. Gold has support near Rs. 1,47,650 and Rs. 1,45,310. Resistance lies near Rs. 1,52,850 and Rs. 1,55,950. Silver has support around Rs. 2,59,810 and Rs. 2,52,170. Resistance stands near Rs. 2,74,810 and Rs. 2,80,470.

Experts remain positive on gold and silver for the coming months. Central bank buying and global risks continue to support gold. Silver also gains from industrial demand.

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Some analysts advise buying gold and silver in small amounts during price dips. They suggest avoiding buying at very high levels. Gold may move in a narrow range with a positive trend. Silver may stay more volatile due to sharp price moves.

Overall, the strong rise in gold and silver prices shows renewed interest in bullion markets. Dollar weakness and safe-haven demand continue to guide prices, while market swings remain high.