Gold and silver prices kicked off the week strongly, driven by escalating global tensions that led investors to seek safe-haven assets. Precious metals saw significant gains following a US military operation in Venezuela, adding to uncertainty in the geopolitical landscape.
On the Multi Commodity Exchange (MCX), February gold futures opened higher at Rs 1,36,300 per 10 grams, surpassing the previous close of Rs 1,36,761. Prices continued to climb, reaching an intra-day high of Rs 1,38,200, marking a substantial increase of Rs 2,439.
By 8:45 PM, MCX gold was trading Rs 2,037, or 1.50 percent, higher at Rs 1,37,798 per 10 grams. In the international market, spot gold prices surged by 2.3 percent to $4,425 per ounce.
Silver prices also witnessed a sharp surge after a lackluster Friday session. The March silver futures contract on MCX soared by Rs 13,584 per kilogram, hitting a day’s high of Rs 2,49,900, up from the previous close of Rs 2,35,873.
Other precious metals, including platinum and palladium, experienced strong buying interest, with platinum gaining 5.3 percent and palladium rising by 5 percent. The uptrend in precious metals was primarily fueled by heightened geopolitical tensions between the US and Venezuela.
The recent US military operation in Venezuela, which resulted in the capture of President Nicolás Maduro and his wife, has raised global concerns, leading to increased demand for safe-haven assets like gold and silver. Despite Venezuela’s economic challenges and hyperinflation issues, the military action has sparked broader global apprehensions due to the country’s significant crude oil reserves.
US President Donald Trump announced plans to oversee Venezuela until a political transition is finalized, following the military intervention. Trump’s statements came shortly after US forces conducted airstrikes in Venezuela. Additionally, he mentioned that American oil companies would invest substantial amounts to restore Venezuela’s oil infrastructure and tap into its oil resources.
