Gold and silver prices surged to record highs on Monday in response to escalating tensions between the US Justice Department and the Federal Reserve, as well as heightened protests in Iran. MCX gold February futures rose by 1.46% to Rs 1,40,838 per 10 grams, while MCX silver March futures increased by 3.66% to Rs 2,61,977 per kg.
Spot gold prices also saw a significant surge, rising by 1.45% to $4,575.82 per ounce and hitting a new record high of $4,601.17. Similarly, silver prices climbed by 4.85% to reach $83.19, after touching a record high of $83.88.
Federal Reserve Chair Jerome Powell revealed that the central bank had received grand jury subpoenas from the Justice Department related to his June congressional testimony on Fed headquarters renovations. This development indicated a sharp escalation in President Donald Trump’s conflict with the Fed, raising concerns about the central bank’s independence.
The surge in prices was further fueled by increasing geopolitical risks, mounting political pressure on the Federal Reserve, and disappointing US employment data, which bolstered safe-haven demand. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted that the rise to record highs was also influenced by deadly protests in Iran, leading to safe-haven flows as markets assessed the potential for political unrest and its impact on oil supplies.
Recent demonstrations in Iran, coupled with Trump’s remarks on considering options regarding the country, added to uncertainties alongside other geopolitical hotspots. The latest US jobs report, showing lower-than-expected payroll gains, reinforced expectations of additional interest-rate cuts by the Federal Reserve this year.
Analysts pointed out key levels for gold and silver, with gold having support at Rs 1,34,550-1,32,310 and resistance at Rs 1,41,350-1,43,670. Silver, on the other hand, found support at Rs 2,48,810 to 2,44,170 and resistance at Rs 2,55,810 to 2,59,470.
Gold registered a gain of over 4% last week, while silver saw a rally of more than 7%. Factors such as Russia’s conflict in Ukraine, the US involvement in Venezuela, and discussions over Greenland’s control also contributed to the upward momentum in precious metal prices.
