Gold prices maintained their upward trajectory on Tuesday, further increasing at the open as robust global indicators and persistent safe-haven demand bolstered investor sentiment significantly. On the Multi Commodity Exchange, gold February futures reached a new all-time high of Rs 1,38,300 per 10 grams, increasing by more than Rs 1,400. Meanwhile, silver March futures commenced robustly, surging by more than Rs 4,000 to reach a new high of Rs 2,16,596/kg, reflecting the overall upswing in international bullion markets. Internationally, gold prices reached a new all-time high exceeding $4,480 per ounce, signifying the 50th record-breaking session this year. The rally has been bolstered by rising anticipations of a more lenient monetary policy from the US Federal Reserve, coupled with heightened geopolitical uncertainty.
“So far this year, bullion has soared 70%, on track for its strongest annual gain since 1979,” stated Jigar Trivedi. On the MCX, gold and silver prices continued to rise on Monday. Gold February futures concluded at Rs 1,36,744 per 10 grams, reflecting a 1.90% increase, whereas silver March futures finished the session at Rs 2,12,872 per kg, marking a rise of 2.13%. This robust performance is a continuation of a wider upswing in international bullion markets.
In a further indication of optimism, Manoj Kumar Jain observed that escalating tensions between the US and Venezuela, along with the assassination of a Russian army general, have amplified geopolitical risks, thereby steering investors towards safe-haven assets such as gold and silver. The moderation of inflation in the United States, coupled with the absence of significant developments from the recent policy meeting of the Bank of Japan, contributed positively to price stability.
As of today, the US Dollar Index stood at 98.09, reflecting an increase of 0.18 points, or 0.18%, yet this has not dampened the bullish sentiment in metals. Analysts observe a notable shift in investor appetite, as there is a growing preference for gold and silver over risk assets in the context of ongoing global uncertainties. Gold prices are approaching $4,500 per troy ounce and moving towards levels of $4,890 per troy ounce, while silver prices are trending towards $78 per troy ounce in the international markets.