Gold and silver prices on India’s Multi Commodity Exchange (MCX) jumped up to 2% on Friday morning, marking a decisive rebound for precious metals.
The rally was fueled by positive global cues and a notable shift in market sentiment as expectations for aggressive rate hikes by the US Federal Reserve eased.
The sharp move represents a reprieve for the sector after gold and silver posted their worst quarterly performance in years.
Earlier in the week, prices had retreated under pressure from a strengthening US dollar and rising bets on Fed tightening.
However, the recent pullback in hawkish rate expectations has reversed that trend, providing immediate support to non-yielding assets.
This development underscores the sensitivity of precious metals to shifts in the US monetary policy outlook.