Gold and silver prices saw significant increases on Monday, driven by a weaker US dollar and ongoing geopolitical uncertainties. The MCX gold February futures rose by 1.31% to reach Rs 1,57,484 per 10 grams by 10:45 am. Similarly, MCX silver March futures surged by 4.81% to hit Rs 2,61,900 per kg.
Earlier in the day, silver prices on the MCX spiked by as much as 6% to reach a high of Rs 2,64,885 per kg before experiencing some profit booking. The depreciation of the US dollar since February 4 has made dollar-denominated metals more affordable for international buyers.
Despite Iran’s positive remarks on US-Iran nuclear talks, Tehran has reiterated its intention to retain the right to enrich uranium, hinting at prolonged geopolitical tensions. Market expectations of additional rate cuts by the US Federal Reserve have increased, following calls by San Francisco Fed President Mary Daly for further interest rate reductions to address labor market weaknesses.
Analysts point out key support levels for gold at Rs 1,54,000 and Rs 1,51,800, with resistance at Rs 1,57,700 and Rs 1,60,000. For silver, support levels are noted at Rs 2,36,600 and Rs 2,44,000, with resistance at Rs 2,55,500 and Rs 2,62,600. A recent report suggests that the sharp rise in silver prices could lead to a period of consolidation or market rebalancing.
The bullish sentiment in silver is supported by structural supply deficits, consistent industrial demand, and the persistent safe-haven appeal. Additionally, factors such as steady central-bank accumulation and expectations of accommodative global monetary policies continue to bolster gold prices.
