Gold and silver prices reached new peaks on Wednesday, driven by robust buying interest, a weakening dollar, and escalating geopolitical uncertainties, which have bolstered safe-haven demand.
In the domestic market, MCX gold February futures surged by 2.97% to reach Rs 1,62,387 per 10 grams by 11:30 am, while MCX silver March futures climbed by 6.21% to Rs 3,78,401 per kg.
The international scenario mirrored this trend, with gold and silver prices also hitting all-time highs as concerns over policy ambiguity, fresh tariff warnings, and US Federal Reserve criticism heightened caution among investors.
US gold futures for April contracts surpassed $5,200 per ounce, benefiting from a significant drop in the US dollar’s value. The dollar’s slump to a four-year low followed President Donald Trump’s dismissal of concerns regarding the currency’s strength, noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Gold has seen a nearly 20% increase this year, aided by central bank purchases and stable ETF inflows, with silver experiencing even faster growth, Kalantri added.
Factors such as persistent safe-haven demand, consistent central bank acquisitions, and expectations of accommodative global monetary policies have all contributed to the upward trajectory of precious metal prices.
Silver’s price surge towards $115.42 has now settled within the $106.55–$113 range after minor profit-taking activities. Demand from various sectors like solar, electric vehicles, artificial intelligence/data centers, and electronics remains robust, supported by safe-haven and inflation-hedging flows, according to analysts.
MCX Silver’s performance continues to outshine, displaying resilience against minor corrections post a significant breakout.
While silver may witness short-term price fluctuations due to profit-booking, the overall market sentiment remains positive as long as the dollar’s value remains subdued.
Market watchers anticipate the Federal Open Market Committee’s two-day meeting to maintain interest rates, with expectations of potential rate cuts later in the year.
An analyst highlighted key levels, stating that gold has support at Rs 1,55,050 to Rs 1,53,310 and resistance at Rs 1,59,850 and Rs 1,61,950, while silver has support at Rs 3,44,810 and Rs 3,37,170 with resistance at Rs 3,61,810 and Rs 3,65,470.
