Precious metals markets erupted on Monday with gold and silver posting steep gains, triggered by a sliding dollar and simmering global conflicts. On the MCX, gold for February delivery rose 1.31% to 1,57,484 rupees per 10 grams. Silver March futures leaped 4.81% to 2,61,900 rupees a kilo, after hitting 2,64,885 early in the session—a 6% spike—before some correction.
The US dollar’s dive to post-February 4 lows made gold and silver bargains for overseas investors, sparking fresh buying. Geopolitical risks remain elevated; Iran’s diplomat may call nuclear talks promising, but its uranium stance underscores ongoing friction.
Market watchers foresee extended volatility, pushing investors toward gold and silver as bulwarks against chaos. Hopes for US Fed rate reductions grew louder with Mary Daly urging cuts to heal labor market wounds, a tailwind for bullion.
Analysts highlight gold’s support zones at 1,54,000 and 1,51,800 rupees, resistance at 1,57,700-1,60,000. Silver supports at 2,36,600 and 2,44,000 could hold, with resistance looming at 2,55,500 and 2,62,600.
A recent report notes silver’s climb from 60,000 to 3,20,000 rupees, suggesting possible stabilization or rebalancing. Yet, tight silver supplies, booming industrial use, central bank hoarding, and expectations of lenient monetary policies fortify the uptrend. Bullion’s role as ultimate safe haven looks set to shine brighter.