Gold Prices Rebound Rs 1,300 After Three-Day Fall, Silver Drops Rs 2,000

Gold prices staged a strong comeback in the domestic bullion market on Monday, snapping a three session losing streak as traders stepped in for value buying after the recent decline. While the yellow metal recovered sharply, silver continued its downward journey for the fourth consecutive trading session, reflecting weakness in global markets.

According to the All India Sarafa Association , 99.9 per cent purity gold climbed Rs 1,300 to Rs 1,46,600 per 10 grams (inclusive of all taxes), compared to its previous closing price of Rs 1,45,300 on Thursday. Bullion markets remained closed on Friday on account of Muharram .

The rebound in gold was largely driven by bargain buying, with traders viewing the recent correction as an opportunity to re enter the market. Market experts said the recovery came despite a mixed global backdrop, highlighting continued investor interest in gold as a safe haven.

In contrast, silver prices slipped by Rs 2,000 to Rs 2,24,000 per kilogram , extending losses for the fourth straight session. The white metal had settled at Rs 2,26,000 per kg in the previous session.

Analysts attributed silver's weakness to subdued international prices and cautious investor sentiment. Gaurav Garg , Research Analyst at Lemonn Markets Desk , said silver remained under pressure in the domestic market as global uncertainties continued to weigh on sentiment.

International bullion markets also witnessed a decline on Monday. Spot gold fell by USD 54.14 , or 1.32 per cent , to USD 4,035.12 per ounce , while spot silver dropped nearly 3 per cent to USD 57.62 per ounce .

Market experts pointed to rising crude oil prices and a stronger US dollar as key factors influencing precious metal prices. Praveen Singh , Head of Commodities and Currencies at Mirae Asset Sharekhan , said renewed tensions between the United States and Iran over the weekend pushed oil prices and the dollar index higher, limiting gains in bullion.

Although Washington and Tehran later agreed to halt hostilities following renewed military action, investors remained cautious, keeping pressure on precious metals in global markets.

Looking ahead, traders are closely watching the nonfarm payrolls report and ISM Manufacturing PMI , which are expected to provide fresh insights into the strength of the US economy and the future course of the US Federal Reserve's monetary policy .

With geopolitical tensions, currency movements and upcoming US economic data continuing to influence sentiment, analysts believe gold and silver prices may remain volatile in the days ahead.