Mumbai: Gold and silver prices surged sharply on Monday as global tensions and a weaker US dollar pushed investors towards safe-haven assets.
On the Multi Commodity Exchange (MCX), gold April futures rose 1.83 percent to Rs 1,59,749 per 10 grams during intraday trade. Silver March futures jumped 5.10 percent to Rs 2,65,836 per kg. Earlier in the session, gold had gained nearly 2 percent, while silver climbed around 6 percent.
Geopolitical Concerns Drive Demand
Analysts said rising geopolitical tensions are a major reason behind the rally. US President Donald Trump has set a 10-day deadline for a “meaningful deal” with Iran. Reports suggest Iran is ready to make some concessions on its nuclear programme in exchange for lifting sanctions and recognition of its uranium enrichment rights.
Investors fear that failure in talks could lead to further tensions, which increases demand for safe assets like gold.
Dollar Weakens After US Court Ruling
The US dollar also fell after the US Supreme Court struck down a large portion of President Trump’s tariffs. According to market experts, this decision has reduced uncertainty around sudden tariff announcements but has not completely removed trade concerns.
A weaker dollar generally supports gold and silver prices, as it makes them cheaper for global buyers.
Silver Sees Strong Demand
Silver is witnessing heavy withdrawals from warehouses, especially from Comex. Analysts say this indicates tight supply and strong demand. China’s market shutdown has also added to supply pressure, boosting prices further.
Slower US Growth Adds Support
Concerns about slowing US economic growth are also helping gold. US GDP grew 1.4 percent annually in the fourth quarter, lower than 4.4 percent in the previous quarter and 3.8 percent before that. Slower growth increases safe-haven buying.
Key Levels to Watch
Gold has support at Rs 1,54,400 and Rs 1,53,150, while resistance is seen at Rs 1,59,100 and Rs 1,60,600. Silver has support at Rs 2,48,800 and Rs 2,42,000, with resistance at Rs 2,57,700 and Rs 2,63,620.
Markets are now watching US factory orders, consumer confidence data, and Producer Price Index (PPI) figures for further direction.
