Gold and Silver Prices Surge: Gold Up by ₹3,000 and Silver by ₹6,900 in a Single Leap – Impact of Trump’s Setback

Following a sustained decline, gold and silver prices saw a sharp surge on Wednesday. On the Multi Commodity Exchange (MCX), the price of gold rose by ₹3,088 to reach ₹142,540 per 10 grams, while silver became ₹6,902 more expensive, climbing to ₹186,600 per kilogram.

Wednesday proved to be a highly eventful day for those looking to purchase gold and silver. After a continuous downward trend, prices have suddenly spiked. While the costs of these precious metals had been falling for the past few days, the market sentiment shifted today. Amidst the results of the US midterm elections and a weakening dollar, investors have once again begun pouring capital into gold and silver. This shift was reflected in the domestic market, where, in a single stroke, the price of gold jumped by over ₹3,000, and silver saw an increase of approximately ₹6,900.

On the Multi Commodity Exchange (MCX), gold for December delivery climbed 2.21%—an increase of ₹3,088—to reach ₹142,540 per 10 grams. Meanwhile, the price of silver surged by 3.84%, reaching ₹186,600 per kilogram—a single-day gain of ₹6,902.

What Fueled the Surge in Gold?

Following the lackluster performance of President Donald Trump’s Republican Party in the US midterm elections, discussions regarding political uncertainty intensified in the market. In the election results, the Democratic Party gained ground in both the Senate and the House of Representatives. Consequently, investors opted to shift their capital into gold and silver, viewing them as safer alternatives to riskier investment options. Additionally, the dollar weakened, and US bond yields also saw a significant decline. Generally, when the dollar weakens, purchasing gold in the international market becomes cheaper for investors from other countries.

Prices also rose in the international market

Gold and silver prices witnessed a sharp surge in foreign markets as well. On COMEX, gold rose by 2.32% to reach $4,031.90 per ounce. Meanwhile, silver saw a jump of 4.10%, trading at $51.795 per ounce.

What is the outlook for gold and silver prices?

According to market experts, the ₹1,40,000 level serves as a key support for gold on the MCX, while the next resistance level lies between ₹1,43,000 and ₹1,43,700. For silver, the ₹1,78,000 to ₹1,80,000 range is considered the support level, and the ₹1,86,000 to ₹1,88,000 range is viewed as the resistance level.