Gold and silver prices recovered in Monday’s trade after hitting multi-month lows, as easing inflationary pressures amid a sharp retreat in crude oil prices supported sentiment. A drop in the US dollar also lent support to the rebound in precious metals.
The December gold futures contract on the MCX gained ₹2,039 per 10 grams to touch the day’s high of ₹1,40,524. In the previous session, the yellow metal had fallen to its lowest level since March.
Silver prices also attempted a recovery, with the futures contract rising ₹5,543 per kg to ₹1,84,675.
The rebound came after silver logged back-to-back monthly losses, with October marking its steepest monthly decline, at 20%, or ₹44,574 per kg and during the period, it touched the lowest level in 10 months.
Crude oil prices extended the decline on Monday, with Brent crude futures dropping 7% to below $105 a barrel, as hopes for a diplomatic resolution to the US-Iran conflict eased concerns over further supply disruptions.