MUMBAI, India — Gold and silver prices surged sharply on Monday as escalating geopolitical tensions and a steep decline in the U.S. dollar fueled strong safe-haven buying.
On the Multi Commodity Exchange, gold April futures rose 1.83 percent to Rs 1,59,749 per 10 grams during intraday trade, while silver March futures climbed 5.10 percent to Rs 2,65,836 per kilogram. Earlier in the session, gold had jumped nearly 2 percent and silver surged as much as 6 percent.
Market analysts said the rally was driven by mounting geopolitical uncertainty as a 10-day deadline set by U.S. President Donald Trump for a “meaningful deal” with Iran approaches. Iran has indicated it is willing to make concessions on its nuclear program in exchange for sanctions relief and recognition of its right to enrich uranium, as it seeks to avert potential military action by the United States.
Precious metals also gained after the U.S. dollar weakened following a U.S. Supreme Court ruling that struck down a large portion of President Trump’s tariff measures.
“The U.S. Supreme Court’s decision to strike down a large swath of Trump’s tariffs has weakened his ability to threaten and impose tariffs at a moment’s notice, but it won’t end the lingering uncertainty for trade partners or companies,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd.
Silver prices were further supported by tightening supply conditions. “Silver is witnessing a large drawdown in inventories across warehouses, especially on Comex, indicating tight supply and a surge in demand as China remains shut,” Modi said.
Concerns over slowing U.S. economic growth also added to gold’s appeal as a safe haven. U.S. gross domestic product grew at an annualized rate of 1.4 percent in the fourth quarter, sharply lower than 4.4 percent in the July-September period and 3.8 percent in the April-June quarter.
Analysts said gold has support levels at Rs 1,54,400 and Rs 1,53,150, with resistance seen at Rs 1,59,100 and Rs 1,60,600. For MCX silver, support is placed at Rs 2,48,800 and Rs 2,42,000, while resistance levels are seen at Rs 2,57,700 and Rs 2,63,620.
Market participants are now closely watching upcoming U.S. factory orders data, consumer confidence readings and Producer Price Index figures for further cues on price direction. (Source: IANS)
