Precious metals recover sharply after recent losses as COMEX rally boosts market sentiment.
Key Highlights
- Gold prices on COMEX jumped 3.06% to $4,239.90 per ounce.
- Silver prices surged 6.44% to $68.12 per ounce.
- Domestic markets had recently witnessed declines of ₹1,600 per 10 grams in gold and ₹5,000 per kg in silver.
- Short-covering and renewed safe-haven demand supported the rebound.
- US Federal Reserve policy expectations remain a key driver for bullion prices.
- Dollar index movements continue to influence precious metal trends.
- Geopolitical tensions and crude oil fluctuations are adding to market volatility.
Gold and silver prices witnessed a strong recovery on June 13 after suffering steep declines in recent sessions, bringing renewed optimism to investors and bullion traders. The rebound in international markets, particularly on the COMEX exchange, has helped precious metals regain momentum and temporarily halt the downward trend seen in domestic markets.
According to market data, COMEX gold prices surged 3.06 per cent to reach $4,239.90 per ounce, while silver recorded an even stronger rally of 6.44 per cent, climbing to $68.12 per ounce. The sharp gains in global markets are expected to influence domestic bullion prices positively, with jewellers and investors closely tracking the developments.
The recovery comes after a period of significant correction in the Indian bullion market. In recent days, domestic gold prices had declined by nearly ₹1,600 per 10 grams, while silver prices had fallen by approximately ₹5,000 per kilogram. The correction had provided temporary relief to consumers, particularly during the wedding season, when demand for precious metals traditionally remains strong.
Market analysts attribute the earlier weakness in bullion prices to a combination of global factors. Concerns over persistent inflation, expectations surrounding future interest rate decisions by the US Federal Reserve, and geopolitical uncertainties had triggered profit booking and cautious investor sentiment, leading to sustained selling pressure.
However, the latest rally appears to be supported by short-covering at lower levels and renewed safe-haven demand amid evolving geopolitical developments. Investors have once again shifted their attention toward precious metals as protective assets during periods of uncertainty.
Experts note that gold and silver prices remain highly sensitive to international developments. The direction of the US Federal Reserve’s monetary policy continues to play a crucial role, as higher interest rates typically reduce the appeal of non-yielding assets like gold. Similarly, movements in the US dollar index significantly influence global bullion prices.
Geopolitical tensions in West Asia have also contributed to heightened volatility. During periods of uncertainty, investors often increase allocations toward safe-haven assets, boosting demand for gold and silver. Additionally, fluctuations in crude oil prices affect inflation expectations worldwide, indirectly supporting precious metals.
Despite the recent rebound, analysts caution that volatility may persist in the near term. Investors are advised to monitor global economic indicators, central bank commentary, currency movements, and geopolitical developments before making investment decisions.
While the latest recovery has restored some confidence in the bullion market, experts believe that sustained gains will depend on broader macroeconomic trends and the evolution of global risk sentiment in the coming weeks.
