Gold and silver prices reached record levels on Thursday due to escalating geopolitical tensions following US President Donald Trump’s military threat against Iran. The surge was driven by strong buying demand, central bank purchases, and a weakening US dollar. MCX gold February futures surged by 5.99% to Rs 1,75,885 per 10 grams, while MCX silver March futures rose by 4.24% to Rs 4,01,699 per kg.
In international markets, silver traded near $120 per ounce, with a remarkable 60% increase this year, supported by ongoing supply constraints. The rally in precious metals was influenced by the US Federal Reserve’s decision to maintain interest rates unchanged. Trump’s call for Iran to resume nuclear program negotiations under threat of severe military action further fueled the market.
US gold futures for April climbed over $300, surpassing $5,588.71 per ounce and hitting a new all-time high of $5,626. Analysts noted a shift in the $5,600 resistance band to a strong support level, indicating a robust bull phase. Factors such as US tariff disputes with allies, the potential for a government shutdown, and signs of global economic slowdown increased demand for safe-haven assets.
Amidst concerns of slowing global growth and US debt levels, precious metals are viewed positively for the medium to long term. The Federal Reserve’s indication of prolonged low interest rates creates a supportive liquidity environment, ensuring that any dips in precious metal prices are met with significant buying interest.
