SRINAGAR: Gold and silver prices surged to fresh record levels on Tuesday, supported by continued weakness in the US dollar and growing expectations of interest-rate cuts by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold February futures climbed 1.48 per cent to Rs 1,58,343 per 10 grams, while silver March futures jumped sharply by 6.56 per cent to Rs 3,56,670 per kilogram.
During early trade, gold touched an intraday peak of Rs 1,59,820 per 10 grams, marking a gain of nearly 2.4 per cent, before prices eased slightly due to profit booking.l
International markets also witnessed strong gains, with both gold and silver hitting lifetime highs as investors moved toward safe-haven assets amid rising geopolitical and economic uncertainty. Concerns over a possible US government shutdown, along with President Donald Trump’s renewed threats of imposing 25 per cent tariffs on South Korean automobiles, lumber and pharmaceutical imports, further intensified global trade tensions. Trump also warned Canada of a potential 100 per cent tariff if it enters into a trade deal with China.
US gold futures for April rose around 1 per cent to $5,113.70 per troy ounce, as the dollar index slipped 0.1 per cent, making bullion cheaper for holders of other currencies.
Analysts said persistent safe-haven demand, continued central-bank buying and expectations of accommodative global monetary policies are supporting precious metal prices. COMEX silver crossed the $99 mark, registering fresh lifetime highs.
Meanwhile, the two-day meeting of the US Federal Open Market Committee (FOMC), beginning this week, is widely expected to keep interest rates unchanged. However, traders are pricing in at least two rate cuts later in the year.
Rahul Kalantri, Vice President Commodities at Mehta Equities Ltd, said market attention has shifted to the Federal Reserve’s policy decision, while speculation over political pressure on the central bank continues to influence sentiment. He noted that these factors have strengthened the debasement trade, leading to strong inflows into silver and other precious metals.
According to technical estimates, gold has support in the Rs 1,57,050–Rs 1,55,310 range, with resistance seen at Rs 1,59,850 and Rs 1,62,950. Silver has support at Rs 3,38,810 and Rs 3,22,170, while resistance lies at Rs 3,55,810 and Rs 3,62,470.
Another analyst projected that gold prices could rise to Rs 1,65,000 per 10 grams and silver to Rs 3,65,000 per kilogram in the coming sessions.
However, a recent report cautioned that silver’s rapid rally from around Rs 60,000 to Rs 3,20,000 may lead to consolidation at elevated levels, as market participants reassess positions and rebalance portfolios.
