- Silver prices rose by Rs 10,975 to Rs 2.79 lakh per kg in Delhi on Tuesday
- Gold prices increased by Rs 400 to Rs 1,64,700 per 10 grams amid global trends
- US dollar weakness and easing Treasury yields boosted precious metal demand
Silver prices surged by Rs 10,975 to Rs 2.79 lakh per kilogram in the national capital on Tuesday, while gold rose Rs 400, tracking strong global trends as a weak US dollar boosted demand for the safe-haven asset.
Ending its three-day losing streak, the white metal soared by Rs 10,975, or 4.09 per cent, to Rs 2,79,275 per kg (inclusive of all taxes) from Monday's closing level of Rs 2,68,300 per kg, as per the All India Sarafa Association.
Gold prices also moved higher, with the metal having 99.9 per cent purity rising by Rs 400, or 0.24 per cent, to Rs 1,64,700 per 10 grams (inclusive of all taxes).
The yellow metal settled at Rs 1,64,300 per 10 grams in the previous session.
Gold and silver prices saw a notable uptick on Tuesday, driven primarily by geopolitical developments as US President Donald Trump hinted at a potential resolution to the ongoing conflict in West Asia, which has kept investors on edge, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
The turmoil has created a volatile market environment, with inflation fears prompted by skyrocketing crude oil prices impacting investor sentiment, he added.
In the international markets, spot silver gained USD 1.38, or 1.6 per cent, to USD 88.33 per ounce, while gold was trading nearly 1 per cent higher at USD 5,172.86 per ounce.
"Gold and silver rebounded on Tuesday as a pullback in the US dollar and Treasury yields provided relief to precious metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
The dollar index retreated after touching a 15-week high in the previous session, while US Treasury bond yields also edged lower, creating room for bullion prices to recover, Gandhi added.
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Echoing similar views, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said silver gained to trade around USD 90 per ounce after Trump suggested that the Gulf conflict could end soon, easing inflation concerns, following the sharp correction in oil prices.
The dollar had initially strengthened when crude oil briefly surged toward USD 119 per barrel, a move seen as potentially inflationary and supportive of a more hawkish policy stance from the Federal Reserve.
However, the sharp pullback in crude prices later in the session helped precious metals rebound from their earlier lows.
"Gold was also supported by continued central bank demand, with the People's Bank of China extending its gold reserve purchases for a sixteenth consecutive month in February," Chainwala said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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