Gold and silver prices reached all-time highs on Tuesday, driven by the US dollar’s continued weakness and expectations of rate cuts by the US Federal Reserve. In India, MCX gold February futures surged by 1.48% to Rs 1,58,343 per 10 grams, while MCX silver March futures rose by 6.56% to Rs 3,56,670 per kg.
The surge in prices saw gold peaking at Rs 1,59,820 per 10 grams earlier in the day, marking a 2.4% increase, before profit-booking activities tempered the price levels. Global markets also experienced record highs in gold and silver prices, with geopolitical tensions prompting investors to seek safe-haven assets.
US gold futures for April contracts climbed around 1% to $5,113.70 per troy ounce as the dollar index slightly eased, making gold more affordable in international markets. Factors such as persistent safe-haven demand, consistent central-bank acquisitions, and expectations of accommodating global monetary policies have contributed to the price surge.
COMEX Silver surpassed the $99 mark, hitting new lifetime highs, reflecting the strong demand for precious metals. The upcoming two-day Federal Open Market Committee (FOMC) meeting in the US is anticipated to maintain current interest rates, but traders foresee potential rate cuts later in the year.
Analysts predict that gold could reach Rs 1,65,000 per 10 grams and silver may touch Rs 3,65,000 per kg in the near future. Following silver’s significant surge from Rs 60,000 to Rs 3,20,000, a consolidation phase at elevated levels or market rebalancing is likely, as per a recent report.
