Mumbai, February 9: Gold and silver prices experienced a significant surge on Monday due to the weakening of the US dollar and ongoing geopolitical tensions worldwide.
On the Multi Commodity Exchange (MCX), gold for February delivery rose by 1.31%, reaching ₹1,57,484 per 10 grams. Meanwhile, silver for March delivery jumped by 4.81%, climbing to ₹2,61,900 per kilogram.
Earlier in the day, silver prices on the MCX soared nearly 6%, hitting a peak of ₹2,64,885 per kilogram. However, profit-taking later led to a slight decline in prices.
The US dollar fell to its lowest level since February 4, making dollar-denominated metals like gold and silver cheaper for foreign buyers.
Despite Iran’s top diplomat describing the US-Iran nuclear talks as a good start, Iran has made it clear that it will not relinquish its right to uranium enrichment.
Analysts suggest that global tensions may persist, prompting investors to continue seeking safe-haven assets like gold and silver.
Expectations for interest rate cuts by the US Federal Reserve have increased, especially after San Francisco Fed President Mary Daly called for one or two more rate reductions to address labor market weaknesses. Analysts believe this has also supported gold and silver prices.
One analyst noted that gold could find support at ₹1,54,000 and ₹1,51,800, while resistance levels are seen at ₹1,57,700 and ₹1,60,000.
For silver, support is expected at ₹2,36,600 and ₹2,44,000, with resistance levels at ₹2,55,500 and ₹2,62,600.
A recent report indicated that silver prices have surged from ₹60,000 to ₹3,20,000. Prices may stabilize at these elevated levels for some time as investors balance their portfolios.
Structural supply shortages and consistent industrial demand are bolstering silver prices. Additionally, ongoing demand for safe investments, central bank purchases, and expectations of soft monetary policies globally are also strengthening gold and silver prices.
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DBP/