MUMBAI, Maharashtra — Gold and silver prices surged to fresh record highs on Wednesday, driven by strong buying interest, a sharp decline in the U.S. dollar, and rising geopolitical and policy uncertainty that boosted demand for safe-haven assets.
On the Multi Commodity Exchange, gold February futures climbed 2.97 percent to Rs 1,62,387 per 10 grams around 11:30 a.m., while silver March futures jumped 6.21 percent to Rs 3,78,401 per kg.
International markets also saw precious metals touching new peaks as investor caution grew amid ongoing policy uncertainty, fresh tariff threats, and criticism of the Federal Reserve by the U.S. administration.
U.S. gold futures for April rose above $5,200 an ounce, supported by a sharp slide in the dollar. The greenback fell to its weakest level in four years after President Donald Trump downplayed concerns about the currency’s strength, said Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd.
Kalantri said sustained central bank buying and steady inflows into exchange-traded funds have helped gold gain nearly 20 percent so far this year, with silver posting even stronger gains.
Analysts said persistent safe-haven demand, continued central bank accumulation, and expectations of accommodative global monetary conditions remain key factors supporting precious metal prices.
Silver has surged toward $115.42 and is now consolidating in the $106.55 to $113 range following marginal profit-taking. Analysts said demand from solar energy, electric vehicles, artificial intelligence and data centers, and electronics remains exceptionally strong, alongside safe-haven and inflation-hedge flows.
MCX silver continues to show high-beta outperformance after a strong breakout, absorbing minor corrections with ease, analysts said.
While the sharp near-term rally has triggered brief phases of profit-booking and consolidation, the broader trend for silver remains positive as long as the dollar stays under pressure.
Markets are also closely watching the two-day Federal Open Market Committee meeting, which is widely expected to leave interest rates unchanged. However, traders are pricing in at least two rate cuts later this year.
“Gold has support at Rs 1,55,050 to Rs 1,53,310 zone, while resistance is at Rs 1,59,850 and Rs 1,61,950. Silver has support at Rs 3,44,810 and Rs 3,37,170 while resistance is at Rs 3,61,810 and Rs 3,65,470,” an analyst said. (Source: IANS)
