MUMBAI, India — Gold and silver prices posted sharp gains on Monday, supported by a softer U.S. dollar and continued geopolitical uncertainty that boosted demand for safe-haven assets.
On the Multi Commodity Exchange, gold futures for February delivery rose 1.31 percent to Rs 1,57,484 per 10 grams in intraday trade, while silver futures for March delivery surged 4.81 percent to Rs 2,61,900 per kg.
Silver prices were even higher earlier in the session, jumping as much as 6 percent to an intraday high of Rs 2,64,885 per kg before paring gains amid profit-taking.
The U.S. dollar slipped to its lowest level since February 4, making dollar-denominated metals cheaper for overseas buyers and lending support to bullion prices.
Geopolitical concerns also remained in focus. While Iran’s top diplomat described recent U.S.–Iran nuclear talks as a “good start,” Tehran reiterated that it would retain the right to enrich uranium, prompting analysts to expect tensions to persist and continue supporting safe-haven demand.
Expectations of further interest rate cuts by the U.S. Federal Reserve also underpinned the rally. San Francisco Fed President Mary Daly said one or two additional rate cuts may be needed to address weakness in the labor market, strengthening market hopes of easier monetary policy, analysts said.
Technically, gold has support near the Rs 1,54,000 and Rs 1,51,800 levels, with resistance seen at Rs 1,57,700 and Rs 1,60,000, an analyst said. Silver is supported around Rs 2,36,600 and Rs 2,44,000, with resistance at Rs 2,55,500 and Rs 2,62,600.
According to a recent report, silver’s sharp rise from about Rs 60,000 to Rs 3,20,000 has increased the likelihood of a consolidation phase at elevated levels or portfolio rebalancing by market participants.
The report added that structural supply deficits and steady industrial demand continue to support a bullish outlook for silver, while persistent safe-haven buying, ongoing central-bank accumulation, and expectations of accommodative global monetary conditions remain supportive of gold prices. (Source: IANS)
