Daijiworld Media Network - Mumbai

Mumbai, May 6: Precious metals saw strong gains on Wednesday, with gold and silver rising sharply in both domestic and global markets, supported by a softer dollar and declining oil prices.

On the Multi Commodity Exchange (MCX), gold futures for June 5 opened at Rs 1,52,000 per 10 grams, marking an increase of Rs 2,247 from the previous close. By late morning, prices climbed further to Rs 1,52,419, reflecting a gain of nearly 1.8 per cent, with intraday highs touching Rs 1,52,450.

Silver also posted robust gains. Futures for July 3 opened at Rs 2,49,316 per kg and surged to Rs 2,51,699, registering a rise of over 3 per cent during the session.

The upward trend extended to international markets as well. On COMEX, gold prices rose close to 2 per cent to $4,656 per ounce, while silver jumped more than 3 per cent to $76.12 per ounce.

Market analysts attributed the rally to a decline in the US Dollar Index, which slipped by 0.34 per cent. A weaker dollar typically boosts demand for commodities like gold and silver by making them more affordable for investors holding other currencies.

Additionally, easing concerns around geopolitical tensions involving United States and Iran, along with some stabilization in crude oil prices, helped lift investor sentiment.

However, experts cautioned that gains in bullion may remain limited due to persistently high crude prices and expectations that interest rates could stay elevated for a longer period.

In energy markets, Brent crude fell 2.30 per cent to $107.33 per barrel, while West Texas Intermediate declined 3 per cent to $99.12 per barrel, further influencing movements in precious metals.