Silver Prices Soar by Rs 3.4 Lakh; Gold Hits Rs 1.6 Lakh Mark
Gold and silver prices reached new heights last Friday, continuing a remarkable upward trend fueled by rising geopolitical tensions, a softer U.S. dollar, and expectations of interest rate cuts by the Federal Reserve during its upcoming meeting on January 27.
Key Drivers of Rising Gold and Silver Prices
– Geopolitical Tensions: Ongoing global conflicts have historically made gold and silver safe-haven assets, leading investors to flock to these precious metals.
– Weakening U.S. Dollar: A softer dollar often boosts the attractiveness of gold and silver priced in other currencies, driving demand.
– Federal Reserve Expectations: Anticipations of interest rate cuts can increase investment in gold and silver as lower rates reduce the opportunity cost of holding these assets.
Current Market Performance
– Gold Prices:
– MCX Gold futures for February 5, 2026, climbed by Rs 2,885 (2%) to reach Rs 1,59,226 per 10 grams.
– Spot gold in the international market rose by 0.5% to $4,961.57 per ounce after achieving a record high of $4,966.59 earlier that day.
– Silver Prices:
– MCX silver futures for March 5, 2026, gained Rs 12,638 (3.8%) to reach Rs 3,39,927 per kg.
– Spot silver increased by 0.9% to $97.01 an ounce, following a peak of $97.44.
Future Projections for Precious Metals
Gold appears to be on a robust upward trajectory, as Goldman Sachs upgraded its end-2026 price target for gold to $5,400 per ounce, up from an earlier forecast of $4,900. This change reflects a perceived structural shift in demand, propelled by private investors and emerging-market central banks diversifying from traditional reserve assets.
Trading Strategies for Gold and Silver
– Volatility Outlook: Both gold and silver are expected to remain volatile, influenced by fluctuations in the dollar index and ongoing geopolitical factors.
– Price Support and Resistance:
– Gold: Support at $4,890–$4,834 and resistance at $4,955–$5,000 per ounce.
– Silver: Support at $94.60–$92.20 and resistance at $98.40–$100.00 per ounce.
Recommendations
We recommend a buy-on-dips strategy:
– Gold: Consider buying on dips as long as it holds the Rs 1,50,000 level, with an upside target of Rs 1,62,000–Rs 1,70,000.
– Silver: Adopt a buy-on-dips strategy while it maintains above Rs 3,04,000, targeting Rs 3,35,000–Rs 3,50,000.
Current Physical Gold Prices in Major Cities
– Delhi:
– 22-carat gold: Rs 1,13,272 (8 grams)
– 24-carat gold: Rs 1,23,560 (8 grams)
– Mumbai:
– 22-carat gold: Rs 1,13,152 (8 grams)
– 24-carat gold: Rs 1,23,440 (8 grams)
– Chennai:
– 22-carat gold: Rs 1,13,592 (8 grams)
– 24-carat gold: Rs 1,23,920 (8 grams)
– Hyderabad:
– 22-carat gold: Rs 1,13,152 (8 grams)
– 24-carat gold: Rs 1,23,440 (8 grams)
(Disclaimer: The recommendations and analyses provided are based on expert opinions and do not represent the views of The Economic Times.)
Silver prices have indeed shown remarkable resilience and growth, reinforcing the strategic value of investing in precious metals during uncertain times.