Daijiworld Media Network - New Delhi

New Delhi, Nov 9: Gold and silver prices surged by up to two per cent on Monday, supported by easing crude oil prices, a retreat in the US dollar and improving investor sentiment.

On the Multi Commodity Exchange (MCX), December 4 gold futures climbed as much as 1.29 per cent, or Rs 1,848, to touch an intraday high of Rs 1,44,400 per 10 grams.

At around 12.55 pm, gold was trading at Rs 1,43,700 per 10 grams, up Rs 1,148 or 0.81 per cent from its previous closing level.

Silver futures for December 4 also witnessed strong buying, gaining as much as 2.32 per cent, or Rs 4,299, to reach an intraday high of Rs 1,89,399 per kg.

At the latest count, silver was trading at Rs 1,86,840 per kg, up Rs 1,740 or 0.94 per cent from its previous close.

Commodity market experts said bullion prices resumed their gap-up rally as softer crude oil prices eased inflation concerns, while a modest decline in the US dollar provided additional support.

Gold gained fresh momentum following the US midterm elections, despite stronger-than-expected employment growth in October and a decline in the unemployment rate to 4.1 per cent. These developments reinforced expectations of a December interest rate hike by the US Federal Reserve, experts said.

Investors are expected to closely track geopolitical developments, Russia-Ukraine peace talks, crude oil price movements, US inflation data and signals from the Federal Reserve for further direction in the precious metals market.

In international markets, COMEX gold advanced around one per cent to nearly $4,130, while silver climbed approximately two per cent to $53.10, outperforming gold.

On the domestic front, MCX gold has immediate support at Rs 1,43,000-Rs 1,43,700, while resistance is placed at Rs 1,45,300-Rs 1,46,000. A sustained move above Rs 1,46,000 could extend the recovery, while a decisive break below Rs 1,43,000 may expose the metal to further losses, experts said.

For MCX silver, immediate support is seen at Rs 1,86,000-Rs 1,88,000, while resistance is placed at Rs 1,94,000-Rs 1,96,000.

A sustained move above Rs 1,96,000 could extend the rally, while a break below Rs 1,86,000 may trigger a retreat towards Rs 1,80,000, they added.

Experts said the near-term outlook for both precious metals remained cautiously positive, although elevated US Treasury yields and expectations of a December Federal Reserve rate hike could restrict further gains.

Meanwhile, crude oil prices remained under pressure as easing tensions between the US and Iran reduced concerns over possible disruptions to global oil supplies.