MUMBAI, India — Gold prices hovered near record highs while silver surged to a fresh peak on Wednesday, supported by softer U.S. inflation data and heightened geopolitical tensions that boosted safe-haven demand.
On the Multi Commodity Exchange, gold futures for February rose 0.53 percent to Rs 1,42,995 per 10 grams around 10:05 a.m. Silver futures for March jumped 4.53 percent to Rs 2,87,640 per kg.
Investor sentiment was buoyed after U.S. core Consumer Price Index data for December showed inflation rising 0.2 percent month-on-month and 2.6 percent year-on-year, both below market expectations. The softer print strengthened expectations that the U.S. Federal Reserve could begin cutting interest rates later in 2026, a scenario typically supportive of gold prices.
Analysts said the inflation data, combined with mixed signals from the U.S. labor market, suggests the Fed is likely to hold rates steady in January before potentially delivering two to three rate cuts over the course of the year.
“Ongoing geopolitical and economic uncertainties continued to fuel safe-haven demand. Civil unrest in Iran and rising geopolitical tensions further supported buying interest in precious metals,” said Rahul Kalantri, Vice President for Commodities at Mehta Equities Ltd. “Core CPI was below expectations of 0.3 percent and remained steady on a year-on-year basis, reinforcing the view that underlying inflation pressures are easing.”
According to technical analysts, gold has support in the Rs 1,39,550 to Rs 1,37,310 range, while resistance is seen between Rs 1,44,350 and Rs 1,46,670. Silver support is placed between Rs 2,69,810 and Rs 2,54,170, with resistance in the Rs 2,79,810 to Rs 2,84,470 zone.
Market participants also pointed to rising geopolitical risks linked to unrest in Iran and tensions involving Venezuela and Greenland as additional factors driving demand for precious metals.
Analysts said gold and silver prices are likely to remain volatile this week amid fluctuations in the dollar index and ahead of an anticipated U.S. Supreme Court decision related to tariffs.
Silver prices, meanwhile, remain firmly above key short- and medium-term averages following a strong breakout. Analysts said the rally is being driven by a combination of strong industrial demand from sectors such as solar energy, electric vehicles, artificial intelligence, and electronics, alongside safe-haven inflows and tightening supply conditions. (Source: IANS)
