Silver Soars 6%, Gold Up Over 1% to Scale New Peak: What’s Next for Bullion?
Gold and silver have reached unprecedented heights on the Multi-Commodity Exchange (MCX), driven by rising geopolitical tensions and a weakening dollar, which have significantly boosted safe-haven demand.
Recent Market Performance
– Gold Futures:
– February 5 delivery: Rs 1,58,559 per 10 grams
– Up by Rs 2,522 (1.62%)
– Hit an all-time high of Rs 1,59,820 in early trading
– Global price exceeded $5,100/oz in the previous session
– Silver Futures:
– March 5 delivery: Rs 3,54,530 per kg
– Increased by Rs 19,831 (5.93%)
– Briefly reached a record high of Rs 3,54,780
– Reflects a global rise to a new peak of $117.69 an ounce
As geopolitical uncertainties continue, demand for these precious metals shows no signs of waning, elevating prices further.
Global Trends Impacting Bullion
– Gold:
– Spot gold rose by 1.1% to $5,068.05 per ounce, following a record Monday close of $5,110.50.
– US gold futures for February delivery gained 0.4%, trading at $5,063.00 per ounce.
– Silver:
– Spot silver jumped 6.3% to $110.39 an ounce after reaching $117.69, marking a remarkable 55% gain in 2026 alone.
Geopolitical Factors at Play
– Recent announcements by US President Donald Trump regarding tariffs on South Korean imports have led to market jitters, increasing the allure of gold and silver.
– The US Dollar Index (DXY) has fallen to a four-month low, dipping below 97, bolstered by a rebound in the Japanese yen. A weaker dollar enhances the attractiveness of gold and silver for international investors.
Expert Insights
Manoj Kumar Jain from Prithvifinmart Commodity Research emphasizes that ongoing geopolitical uncertainties alongside strong consumer confidence contribute to sustained demand for gold and silver. He noted the high volatility in both markets and indicated support levels and projections:
– Technical Levels:
– Gold:
– Support: Rs 1,54,800 to Rs 1,53,300
– Resistance: Rs 1,58,800 to Rs 1,61,500
– Silver:
– Support: Rs 3,26,000 to Rs 3,16,600
– Resistance: Rs 3,48,000 to Rs 3,65,000
Jain recommends buying on dips, anticipating gold could reach Rs 1,65,000 and silver may approach Rs 3,65,000 in the near term.
Current Gold Prices in Major Cities
– Delhi:
– 22 carat: Rs 1,18,632 per 8 grams
– 24 carat: Rs 1,27,976 per 8 grams
– Mumbai:
– 22 carat: Rs 1,17,728 per 8 grams
– 24 carat: Rs 1,26,944 per 8 grams
– Chennai:
– 22 carat: Rs 1,17,352 per 8 grams
– 24 carat: Rs 1,26,544 per 8 grams
– Hyderabad:
– 22 carat: Rs 1,17,600 per 8 grams
– 24 carat: Rs 1,26,824 per 8 grams
Conclusion
The recent surge in gold and silver prices indicates that market dynamics are influenced heavily by geopolitical instability and fluctuating currency values. As investor interest remains strong, traders should keep a close eye on market movements and potential support levels. With analysts projecting further potential gains, it’s clear that gold and silver are not just momentarily rising; they could be gearing up for a sustained upward trajectory amidst ongoing global challenges.