On Monday, gold prices commenced at unprecedented record highs, propelled by escalating geopolitical tensions. On the Multi Commodity Exchange, silver March futures surged to a new lifetime high of Rs 2,63,996 per kg, registering a sharp gain of over Rs 10,314 or 4%.In the interim, gold February futures reached a new high of Rs 1,41,250 per 10 grams, starting at Rs 1,39,600 and achieving intraday gains of approximately Rs 2,000 or 1.4%. The surge in precious metals is occurring in the context of increased safe-haven demand, driven by rising global volatility, economic uncertainty, and heightened geopolitical risks, including unrest in Iran and escalating global trade tensions. Gold prices surpassed the $4,600 per ounce threshold globally on Monday, marking an unprecedented milestone, while silver also reached a historic peak. The rally was propelled by escalating geopolitical and economic uncertainties, coupled with heightened expectations for interest rate reductions in the US.
Spot gold increased by 1.3% to $4,469.49 per ounce as of 0203, following an earlier peak of $4,600.33, which marked an all-time high for the commodity. Gold futures in the United States for February delivery experienced an increase of 2%, reaching a price of $4,591.10. In a development that contributes to market volatility, US Federal Reserve Chair Jerome Powell disclosed on Sunday that he faced threats of criminal indictment from the Trump administration regarding his Congressional testimony. Powell characterized this action as a “pretext” aimed at exerting pressure on the Fed to reduce interest rates.
Gold and silver prices concluded the trading session on Friday with gains, reflecting movements in global markets. The February futures contract for gold concluded at Rs 1,38,819 per 10 grams, reflecting an increase of 0.78%. Meanwhile, the March futures for silver settled at Rs 2,52,725 per kilogram, marking a rise of 3.86%. Tensions in Iran have exacerbated market anxiety, as a rights group has reported more than 500 fatalities amid ongoing civil unrest. Iran has issued threats to target US military bases in response to the latest warnings from President Trump. The international atmosphere continues to be fraught, as the United States adopts a more assertive posture, which includes the removal of Venezuela’s President, a reported interest in Greenland, and support for protests in Iran.
Gold and silver have experienced a rally in recent times, driven by significant volatility in global commodity markets, which is exacerbated by rising geopolitical tensions and a precarious economic outlook. The recent passage of a bill by the US administration, which imposes a staggering 500% tariff on BRICS nations for the importation of Russian oil, has contributed to increased volatility in the markets. “The rising aggression from the US President is fuelling uncertainty in financial markets and prompting investors to flock to safe-haven assets like gold and silver,” stated Manoj Kumar Jain. On Monday, the US Dollar Index was hovering around 98.96, reflecting a decline of 0.17 points or 0.17%. “We are observing significant fluctuations in precious metals,” Jain remarked. “But silver is likely to maintain its support level near $65 per troy ounce, and gold may stabilize around $4,240 per ounce on a closing basis.”