MUMBAI, India — Gold and silver prices rose sharply on Monday, supported by a weaker U.S. dollar and continued geopolitical uncertainty that boosted demand for safe-haven assets.
On the Multi Commodity Exchange, gold futures for February delivery climbed 1.31 percent to Rs 1,57,484 per 10 grams in intraday trade around mid-morning. Silver futures for March delivery surged 4.81 percent to Rs 2,61,900 per kg.
Silver prices were particularly volatile, hitting an intraday high of Rs 2,64,885 per kg, up nearly 6 percent, before easing on profit booking.
The rally was aided by a decline in the U.S. dollar, which fell to its lowest level since February 4. A weaker dollar typically makes dollar-priced commodities such as gold and silver more attractive to overseas buyers.
Geopolitical concerns also remained in focus. While Iran’s top diplomat described recent U.S.–Iran nuclear talks as a “good start,” Tehran reiterated its intention to retain the right to enrich uranium. Market participants expect geopolitical tensions to persist, supporting continued interest in safe-haven investments.
Expectations of further interest rate cuts by the U.S. Federal Reserve also lent support to precious metals. Market sentiment was bolstered after San Francisco Federal Reserve President Mary Daly said one or two additional rate cuts may be needed to address weakness in the U.S. labor market. Analysts said expectations of easier monetary policy remain a key tailwind for gold and silver prices.
From a technical perspective, analysts said gold has support in the Rs 1,54,000 and Rs 1,51,800 zones, with resistance seen near Rs 1,57,700 and Rs 1,60,000. For silver, support is placed at Rs 2,36,600 and Rs 2,44,000, while resistance is seen at Rs 2,55,500 and Rs 2,62,600.
According to a recent report, silver’s sharp rally from around Rs 60,000 to as high as Rs 3,20,000 over a longer period could lead to a phase of consolidation at elevated levels or portfolio rebalancing by investors. However, structural supply deficits and steady industrial demand continue to support a bullish outlook for silver.
For gold, analysts said persistent safe-haven demand, continued central bank buying and expectations of accommodative global monetary conditions remain key factors underpinning prices. (Source: IANS)
