Gold, silver surge up to 3% over weaker US dollar, geopolitical uncertainty

New Delhi: Gold and silver prices extended gains on Wednesday, with precious metals surging up to 3 per cent amid support from a weaker US dollar, lower Treasury yields and continued geopolitical uncertainty.

In the domestic market, 24-karat gold touched Rs 1,41,980 per 10 grams, up 1.4 per cent, while 999 fine silver rose Rs 4,520 per kg or 2.5 per cent to Rs 1,85,000 per kg as of 11.10 am.

On the Multi Commodity Exchange (MCX), December gold futures climbed 1.76 per cent to Rs 1,41,911 per 10 grams, while December silver futures advanced 3.09 per cent to Rs 1,85,249 per kg.

Bullion prices recovered after a sharp decline in the previous session as softer crude oil prices helped ease inflation concerns, and fuelled hopes that central banks may have more room to adjust monetary policy. Gold, a non-yielding asset, generally benefits from lower yields and a weaker dollar.

Investors remain keen on US political developments, labour market data and Federal Reserve policy signals. According to CME's FedWatch tool, traders currently see a 78 per cent probability of a rate hike in December.

Internationally, COMEX gold futures rose 0.58 per cent to $3,963.20 per ounce. COMEX silver futures gained 0.48 per cent to $49.99 per ounce, against the previous close of $49.825 an ounce.

Russia has agreed to three-way peace talks involving Ukraine and the United States in Abu Dhabi on November 10 and November 11, while negotiations between Iran and the US remain uncertain boosting safe haven demand of gold.

COMEX gold continues to face resistance in the $3,970-$4,000 region, with immediate support near $3,900. Analysts see resistance around Rs 1,41,000 for MCX Gold, followed by the Rs 1,43,000-Rs 1,43,700 level, while Rs 1,40,000 remains a key support zone.

India's gold demand declined 29 per cent year-on-year to 162.5 tonnes in the July-September quarter of 2026, as record-high prices, higher import duty and changing consumer buying patterns weighed on jewellery purchases and investment demand, according to the World Gold Council (WGC).