Daijiworld Media Network - Mumbai
Mumbai, Feb 9: Gold prices rose in Asian trade on Monday, while silver also registered strong gains, after precious metal markets witnessed sharp volatility last week amid weak safe-haven demand, profit booking and uncertainty surrounding US monetary policy.
Spot gold climbed 1.6 per cent to $5,038.38 an ounce, while April gold futures rose 1.7 per cent to $5,064.04 an ounce. Silver recorded sharper gains, with spot prices surging 5.3 per cent to $82.178 an ounce, recovering from last week’s lows near $60. Platinum traded largely flat around $2,105 an ounce.
Metal markets had seen wild swings last week as investors reassessed the outlook for US interest rates following President Donald Trump’s nomination of Kevin Warsh as the next chairman of the Federal Reserve. The announcement strengthened the US dollar, triggering selling pressure across precious metals and prompting investors to book profits after strong recent rallies.
Despite the correction, gold and silver are still up around 15 per cent and 5 per cent respectively so far this year, although both have fallen sharply from record highs seen in early February.
Analysts said institutional interest in gold remains intact. ANZ noted that large investors continue to view gold as an attractive asset, citing data that showed the People’s Bank of China buying gold for the fifteenth consecutive month in January. Central banks globally have increased gold purchases amid concerns over rising fiscal spending and economic uncertainty in developed economies.
Meanwhile, safe-haven demand cooled slightly after the US and Iran indicated progress in weekend talks on Tehran’s nuclear ambitions, with both sides agreeing to continue discussions.
Market participants are now awaiting key economic data from the US and China for further cues. In the US, non-farm payroll data due on Wednesday and consumer price inflation figures on Friday are expected to influence the Federal Reserve’s interest rate outlook. Chinese inflation data, also due later this week, is likely to shape expectations around further stimulus measures.
Investors remain cautious as fluctuations in the dollar, global trade developments and monetary policy signals continue to drive volatility in precious metal markets.