The prices of gold and silver continued to rise due to increased geopolitical uncertainty and expectations of global monetary easing. This surge was fueled by threats from US President Donald Trump to Colombia, Cuba, and Mexico regarding alleged drug shipments, leading to a higher demand for precious metals as safe-haven assets.
On Tuesday, MCX gold February futures increased by 0.35% to reach Rs 1,38,600 per 10 grams around 1:30 pm. Similarly, MCX silver March futures saw a 1.49% rise to Rs 2,49,820 per kg, approaching the record highs set in December.
Data from the India Bullion and Jewellers Association (IBJA) showed that the price of 10 grams of 24-carat gold rose to Rs 1,36,909 on Tuesday from Rs 1,35,721 at the previous day’s close. Analysts noted that the upward trend in gold and silver prices is driven by sustained central-bank purchases, geopolitical uncertainties, and expectations of global monetary easing, making them attractive as portfolio hedges.
Silver, in particular, is benefiting from strong industrial demand related to sectors like solar energy, electric vehicles, AI infrastructure, and broader electrification themes. Reports of Swiss banks moving to seize assets linked to Maduro have also contributed to the increase in bullion prices, while the weakening rupee has further supported domestic gold and silver prices.
According to Rahul Kalantri, VP Commodities at Mehta Equities Ltd, gold has support levels at Rs 1,37,150-1,36,310 and resistance at Rs 1,39,350-1,40,670, while silver has support at Rs 2,42,810 to 2,40,170 and resistance at Rs 2,49,810 to 2,51,470. Investors are eagerly awaiting crucial US employment data later in the week to assess the future policy direction of the Federal Reserve.
Gold prices have surged by nearly 66% in CY25, surpassing $4,500 per ounce, while silver has shown an even stronger performance with a 171% increase.
