Precious metal prices continue rally fuelled by safe-haven demand
The price of gold and silver continued to surge on Tuesday amid elevated geopolitical uncertainty, and expectations of global monetary easing.
Threats from the US President Donald Trump to Colombia, Cuba, and Mexico alleging drug shipments boosted the safe haven demand of precious metals.
MCX gold February futures surged 0.35 per cent to Rs 1,38,600 per 10 grams around 1:30 pm, while MCX silver March futures rose 1.49 per cent to Rs 2,49,820 per kg, nearing the record high levels in December of Rs 1,40,465 per 10 grams and Rs 2,54,174 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,36,909 on Tuesday up from Rs 1,35,721 at the previous day's close, according to data published by the India Bullion and Jewellers Association (IBJA).
Analysts said that the ongoing surge in gold and silver is being driven by structural demand rather than short-term speculative activity. Sustained central-bank gold purchases, elevated geopolitical uncertainty, and expectations of global monetary easing continue to reinforce gold’s role as a core portfolio hedge.
Silver has additional support from robust industrial demand involving solar energy, electric vehicles, AI infrastructure, and broader electrification themes.
"Reports of Swiss banks moving to seize Maduro-linked assets have also supported bullion prices. Meanwhile, rupee weakness continued to lend support to domestic gold and silver," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
"Gold has support at Rs 1,37,150-1,36,310 while resistance at Rs 1,39,350-1,40,670. Silver has support at Rs 2,42,810 to 2,40,170 zone while resistance at Rs 2,49,810 to 2,51,470 zone," Kalantri added.
Investors await crucial U.S. employment data later this week to gauge the Federal Reserve’s future policy direction.
Gold surged nearly 66 per cent in CY25, surpassing $4,500 per ounce, while silver outperformed with a 171 per cent rise.
