MUMBAI, India — Gold and silver prices surged to new record highs as persistent weakness in the U.S. dollar and expectations of interest rate cuts by the U.S. Federal Reserve fueled strong demand for precious metals.
On the Multi Commodity Exchange, gold futures for February rose 1.48 percent to close at Rs 1,58,343 per 10 grams, while silver futures for March jumped 6.56 percent to Rs 3,56,670 per kilogram. Earlier in the session, gold touched an all-time high of Rs 1,59,820 per 10 grams, up 2.4 percent, before easing slightly due to profit-taking.
International markets also saw bullion prices scale record levels, supported by rising geopolitical risks that pushed investors toward safe-haven assets. Renewed concerns over a potential U.S. government shutdown and fresh trade tensions added to the momentum after President Donald Trump threatened to impose 25 percent tariffs on automobile, lumber, and pharmaceutical imports from South Korea. Trump also warned Canada of a 100 percent tariff if it were to reach a trade deal with China.
In the U.S., April gold futures climbed about 1 percent to $5,113.70 per troy ounce as the dollar index slipped 0.1 percent, making bullion more attractive for overseas buyers. COMEX silver surged past the $99 mark, hitting a fresh lifetime high.
Analysts said sustained safe-haven demand, steady central-bank buying, and expectations of accommodative global monetary conditions continue to underpin precious metal prices. Markets are also closely watching the two-day meeting of the U.S. Federal Open Market Committee this week. While interest rates are expected to remain unchanged, traders are pricing in at least two rate cuts later in the year.
“Market focus has now shifted to the upcoming Federal Reserve decision, although speculation around political pressure on the central bank continues to dominate. These developments have strengthened the debasement trade, triggering strong inflows into silver and other precious metals,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Kalantri said gold has support in the Rs 1,57,050 to Rs 1,55,310 range, with resistance at Rs 1,59,850 and Rs 1,62,950. For silver, he sees support at Rs 3,38,810 and Rs 3,22,170, with resistance at Rs 3,55,810 and Rs 3,62,470.
Another analyst forecast that gold could rise to Rs 1,65,000 per 10 grams and silver to Rs 3,65,000 per kilogram in the coming sessions.
However, market participants cautioned that silver’s sharp rally from around Rs 60,000 to above Rs 3,20,000 could lead to a period of consolidation at elevated levels, as rebalancing and profit-booking become more likely. (Source: IANS)
