Gold and silver prices saw significant increases on Monday due to escalating geopolitical tensions and a sharp decline in the US dollar. MCX gold April futures rose by 1.83% to Rs 1,59,749 per 10 grams intraday, while MCX silver March futures surged by 5.10% to Rs 2,65,836 per kg. The surge was attributed to geopolitical uncertainties, with analysts linking it to US President Donald Trump’s approaching deadline for a deal with Iran.
The rise in prices was further fueled by Iran’s willingness to negotiate concessions on its nuclear program with the US in exchange for sanctions relief and recognition of its right to enrich uranium. Additionally, the US dollar weakened following the US Supreme Court’s decision to overturn a significant portion of President Trump’s tariffs. This move has raised concerns about ongoing trade uncertainties despite limiting Trump’s tariff imposition capabilities.
Analysts noted a substantial drawdown of silver inventories from various warehouses, particularly Comex, indicating a supply shortage and heightened demand, especially with China’s market closures. Gold’s appeal as a safe-haven asset was also supported by worries over the slowing US economic growth, with the US GDP increasing by 1.4% annually in the fourth quarter, down from previous quarters.
Technical analysis suggests that gold has support levels at Rs 1,54,400 and Rs 1,53,150, with resistance at Rs 1,59,100 and Rs 1,60,600. For MCX silver, support levels are at Rs 2,48,800 and Rs 2,42,000, while resistance is at Rs 2,57,700 and Rs 2,63,620. Market focus remains on forthcoming US factory orders data, consumer confidence indicators, and the US Producer Price Index (PPI) data.
