Mumbai: Gold and silver prices rose sharply in futures trading on Monday, following strong global trends. On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped by Rs 1,509, or 1.11 percent, to Rs 1,37,270 per 10 grams, with a total turnover of 15,226 lots. After falling nearly 3 percent last week from record highs in December, the yellow metal staged a rebound as investors reacted to renewed geopolitical tensions and expectations around key US economic data.
In international markets, Comex gold futures for February delivery rose USD 86.4, or 2 percent, to USD 4,416 per ounce. The metal had fallen almost 5 percent during the previous week to close at USD 4,329.6 per ounce. Analysts say gold could rebound toward USD 4,500 per ounce, supported by uncertainty after US forces captured Venezuelan President Nicolas Maduro, triggering fresh geopolitical concerns.
Silver Gains Strongly
Silver futures on MCX also recorded significant gains. The March contract surged by Rs 6,434, or 2.72 percent, to Rs 2,42,750 per kilogram, in 13,112 lots. Last week, silver had dropped by 1.45 percent after reaching record highs.
On Comex, silver futures rose by USD 4.19, nearly 6 percent, to USD 75.20 per ounce, after falling 8 percent the previous week. Silver had earlier reached a record of USD 82.67 per ounce before tumbling 14.1 percent to USD 71.01.
Factors Driving the Rally
Analysts said the rebound in gold and silver is being driven by geopolitical tensions in Venezuela and expectations around US economic data, particularly the December jobs report, which could provide clues about the Federal Reserve’s next moves.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that silver has surged nearly 150 percent over the last year due to a combination of factors including supply constraints, strong industrial and investment demand, and favorable macroeconomic conditions. China, which produces 60-70 percent of the world’s refined silver, has imposed export restrictions, further tightening global supply.
Investors are keeping a close watch on both metals as they navigate these geopolitical and economic developments, making gold and silver attractive safe-haven options in volatile markets.
