Gold and silver prices saw a consecutive rise due to escalating geopolitical tensions and market factors. The US Defense Department’s move to deploy additional weaponry in the Middle East has fueled concerns, leading to a cautious stance by the US Federal Reserve. In the domestic market, additional margins on gold and silver futures were withdrawn, boosting speculative activity and prices.
MCX gold April futures climbed by 0.22% to Rs 1,56,100 per 10 grams, while MCX silver March futures rose by 0.29% to Rs 2,44,971 per kg. The removal of extra margins by MCX and NSE is anticipated to drive higher speculative engagement and intraday trading, potentially pushing prices upwards. However, thin liquidity due to Lunar New Year holidays in China and other Asian markets posed challenges to the market rally.
In global markets, gold prices remained steady around $5,000, with investors engaging in dip buying ahead of the Federal Reserve meeting minutes. The US Fed’s stance on monetary policy was divided due to mixed economic data, leading to uncertainties. Safe-haven demand for gold was supported by escalating tensions between the US and Iran, maritime security concerns in the Strait of Hormuz, and geopolitical conflicts.
The Federal Reserve’s meeting minutes indicated differing views among officials, with some leaning towards further tightening if inflation persists and others hinting at potential easing later in the year. The dollar and Treasury yields rose on the possibility of prolonged higher rates, limiting gold’s gains. Analysts pointed out key support levels for gold and silver, emphasizing the importance of upcoming data releases for clearer policy direction cues.
