The prices of gold and silver saw significant increases, rising over 1% to reach new all-time highs on Tuesday. The surge was driven by safe-haven demand, particularly due to the escalating tensions between the US and Venezuela. MCX gold February futures climbed 1.2% to hit Rs 1,38,381 per 10 grams, while MCX silver surged 1.7% to reach Rs 2,16,596 per kilogram.
Analysts attributed the rally in gold and silver prices to heightened geopolitical uncertainty, especially the escalating tensions between the US and Venezuela. The US Coast Guard’s recent actions, including seizing a sanctioned super tanker carrying Venezuelan oil, have further fueled these tensions. The dollar index’s decline during the session also contributed to making gold more affordable in overseas currencies.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, highlighted that safe-haven bidding marked the start of a holiday-shortened trading week amid the increased geopolitical tensions. The intensifying US-Venezuela tensions, coupled with the recent killing of a Russian army general in a bomb attack, have raised geopolitical risks and provided support for gold and silver prices.
Both gold and silver prices also received a boost following subdued US inflation and no major surprises from the Bank of Japan’s policy meetings last week. Gold is currently supported at the Rs 1,35,550-1,34,710 zone, with resistance levels at Rs 1,37,650-1,38,470. Meanwhile, silver has support at Rs 2,11,150-2,10,280 and resistance at Rs 2,13,810-2,14,970 levels, according to analysts.
The surge in gold and silver prices this year has been attributed to various factors, including aggressive central bank buying, expectations of US Fed rate cuts, concerns over the impact of US tariffs, geopolitical tensions, and strong inflows into gold and silver ETFs. Domestic spot gold prices have surged by 76% year-to-date, while international gold prices have risen by almost 70% in 2025, marking their strongest annual performance since 1979. Both domestic and international silver prices have also seen significant gains, up about 140% year-to-date.
