Gold, silver prices rise up to 3% on weak dollar and easing oil
Synopsis
Gold and silver surged up to 3 per cent on MCX on 6 May, with silver leading at ₹2,51,699 per kg and COMEX silver gaining 3.45 per cent. A slipping dollar index and a sharp fall in crude oil prices drove the rally, though analysts warn that elevated rates and oil could cap further gains.
Key Takeaways
MCX gold futures (June 5) traded at ₹1,52,419 by 11:30 am IST on 6 May , up ₹2,666 or 1.78 per cent .
MCX silver futures (July 3) rose ₹7,383 or 3.02 per cent to ₹2,51,699 per kg , leading the bullion rally.
COMEX gold gained 1.92 per cent to $4,656 per ounce ; COMEX silver rose 3.45 per cent to $76.12 per ounce .
The dollar index slipped 0.34 per cent to 97.97 , supporting precious metal prices.
Brent crude fell 2.30 per cent to $107.33 and WTI dropped 3 per cent to $99.12 per barrel on Tuesday.
Analysts warn a prolonged higher interest rate environment and elevated crude could cap further bullion gains.
Gold and silver prices surged on Wednesday, 6 May on the Multi Commodity Exchange (MCX), gaining up to 3 per cent as the dollar index slipped and oil prices eased, lifting sentiment across precious metals.
Gold Performance on MCX
Gold futures (June 5) opened at ₹1,52,000 per 10 grams, up ₹2,247 or 1.5 per cent from the previous close of ₹1,49,753. By 11:30 am IST, gold was trading at ₹1,52,419, a gain of ₹2,666 or 1.78 per cent. The yellow metal touched an intraday high of ₹1,52,450, up ₹2,697 or 1.8 per cent, with even the session low remaining firmly in positive territory at ₹1,51,653, up ₹1,900 or 1.26 per cent.
Silver Leads the Rally
Silver futures (July 3) opened at ₹2,49,316 per kg — also the session's intraday low — marking a jump of ₹5,000 or 2.04 per cent from the previous close. The metal subsequently extended gains to trade at ₹2,51,699, up ₹7,383 or 3.02 per cent at the time of filing, outpacing gold's advance and leading the bullion rally on the domestic bourse.
International Markets Mirror Domestic Gains
The bullish trend was mirrored globally. COMEX gold rose 1.92 per cent to $4,656 per ounce, while COMEX silver gained 3.45 per cent to $76.12 per ounce. The broad-based rally across both domestic and international markets underscored the strength of the underlying triggers.
What Drove the Move
Analysts attributed the gains to a combination of factors. The dollar index slipped 0.34 per cent to 97.97 — a level that typically supports precious metal prices, as a weaker dollar makes dollar-denominated commodities cheaper for holders of other currencies. Gold also reportedly recovered from a one-month low, aided by easing concerns over US-Iran tensions and some stabilisation in crude oil prices.
On Tuesday, international oil benchmark Brent crude fell 2.30 per cent to $107.33 per barrel, while US West Texas Intermediate (WTI) crude declined 3 per cent to $99.12 per barrel. Notably, lower crude prices reduce inflationary pressure, which can shift investor appetite toward safe-haven assets like gold and silver.
Factors Capping Further Upside
Despite the day's gains, analysts cautioned that the rally faces headwinds. Elevated crude prices over the medium term and expectations of a prolonged higher interest rate environment continue to cap bullion's upside potential. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, limiting how far prices can climb in the near term. Market participants will be watching upcoming US Federal Reserve commentary closely for fresh directional cues.
Point of View
But the structural headwind — a higher-for-longer rate narrative from the US Fed — has not gone away. Gold recovering from a one-month low on geopolitical easing is a relief bounce, not a trend reversal. With COMEX gold already at $4,656 per ounce, the risk-reward for fresh longs is asymmetric. Investors chasing this rally should note that every prior peak this cycle was followed by a sharp correction once rate expectations re-anchored.
NationPress
11 May 2026
Frequently Asked Questions
Why did gold and silver prices rise on 6 May 2025?
Gold and silver prices rose on 6 May 2025 primarily because the dollar index slipped 0.34 per cent to 97.97 and crude oil prices fell sharply, easing inflation concerns. Analysts also noted that gold recovered from a one-month low as US-Iran tensions eased.
What were MCX gold and silver prices on 6 May 2025?
MCX gold futures (June 5) were trading at ₹1,52,419 per 10 grams, up 1.78 per cent, while MCX silver futures (July 3) rose 3.02 per cent to ₹2,51,699 per kg as of 11:30 am IST on 6 May 2025.
What are COMEX gold and silver prices today?
COMEX gold was up 1.92 per cent at $4,656 per ounce, while COMEX silver gained 3.45 per cent to $76.12 per ounce at the time of the report on 6 May 2025.
What is capping further gains in gold and silver prices?
Analysts say elevated crude oil prices and expectations of a prolonged higher interest rate environment are limiting further upside in bullion. Higher rates raise the opportunity cost of holding non-yielding assets like gold and silver.
How does a weak dollar affect gold and silver prices?
A weaker dollar makes dollar-denominated commodities like gold and silver cheaper for buyers using other currencies, boosting demand and pushing prices higher. The dollar index fell 0.34 per cent to 97.97 on Wednesday, supporting the rally.
