In early trade, silver on MCX became costlier by Rs 5,185 and reached Rs 2.49 lakh per kg. At the same time, the price of gold rose by Rs 3,428 to Rs 1.55 lakh per 10 grams.

Gold and silver prices in international markets

Spot gold rose nearly 1.18% to $5,040 an ounce in Asian trade, while spot silver gained 3.39% to trade at $79.89 an ounce.

However, despite the current surge, both precious metals are still below their record levels. Gold remains down about 11.27% from its all-time high of $5,608.35, while silver has slipped about 52.29% from its all-time high of $121.67 set on January 29.

What is the reason for this rise?

The main reason for the rise in the market was the decisive election victory of ruling Prime Minister Sanae Takaichi in Japan. Expectations for more accommodative fiscal policy have strengthened following the results and the Yen remains under pressure, both factors considered positive for gold. According to Bloomberg report, these expectations are supporting the demand for precious metals.

Focus on American figures

Investors are now waiting for important economic indicators coming from the US, which may give indications on the further policy of the Federal Reserve. January employment data is expected on Wednesday, which is expected to show signs of stability in the labor market. At the same time, inflation related data will be released on Friday.

Why did prices fall last week?

Last week, a sharp fall was seen in both gold and silver. This was due to profit-booking, strengthening of the US dollar and rise in real yields, due to which precious metals lost some of their shine as safe investments. Overall, in the short term, political developments and the direction of US macro data will continue to play an important role in determining the movement of gold and silver.