It seems there is no stopping the rally in precious metals, as both silver and gold extended their record-breaking run into Tuesday’s trade, with investors continuing to favour safe-haven assets amid escalating trade and geopolitical tensions.
Concerns have mounted after US President Donald Trump threatened to raise tariffs on South Korean goods from 15% to 25%. He cited a delay in South Korea’s legislature approving a trade deal the nation had reached with the US last summer.
The precious metals have also drawn support amid worries about another US government shutdown, after Democratic leaders threatened to block a $1.2 trillion funding package if it includes additional allocations for Homeland Security, according to media reports.
Against this backdrop, the dollar index, which tracks the unit against six peers, hit a four-month low of 96.54 in today’s session. A weaker dollar generally supports commodities, as greenback-priced metals become cheaper for holders of other currencies.
At the same time, investor confidence in US assets appeared to weaken following Trump’s tariff threats, putting further pressure on the dollar.
Looming this week is the Fed’s first policy decision of the year. The central bank is widely expected to leave interest rates unchanged, although concerns over its independence from political pressure remain in focus.
Gold tops ₹1.59 lakh, silver crosses ₹3.64 lakh
February gold futures on MCX opened higher in today’s session at ₹1,58,674 per 10 grams, up from the previous close of ₹1,56,037, and went on to hit a new record high of ₹1,59,820 ( ₹3,783 higher), crossing ₹1.59 lakh for the first time.
Over the last 18 trading sessions (including today), gold prices on MCX have gained ₹23,073 per 10 grams. In the international market, gold prices hit a new record, soaring past $5,100 per troy ounce.
After rallying ₹7,410 per kilogram in Friday’s session, the silver March delivery futures contract strengthened further, spiking another ₹30,122 to register a historic peak of ₹3,64,821, taking month-to-date returns to 54%, or ₹1.27 lakh.
Both gold and silver gained 9.5% and 16.31%, respectively, last week following Trump’s threat to impose tariffs on several European countries over Greenland.
Gold, silver to continue rally as long as key levels hold, says expert
Ponmudi R, CEO of Enrich Money, said that MCX Gold continues to mirror global strength, aided by a relatively stable USD/INR in the 91.50–91.93 zone. He said the rising channel structure remains firmly intact, with the ₹1,45,000– ₹1,50,000 zone acting as a strong dynamic support base.
According to Ponmudi, every intraday dip is being absorbed aggressively, reinforcing the strength of the prevailing trend. He added that a clear and sustained breakout above the ₹1,60,000– ₹1,62,500 band can quickly open the path toward ₹1,65,000– ₹1,70,000 in the coming sessions. Overall, Ponmudi said, the bias remains strongly bullish with the trend firmly in control of buyers.
Ponmudi further said that MCX Silver continues to display high-beta outperformance after a strong breakout, absorbing every minor correction with ease. He noted that the rising channel remains steep and firmly intact, with the 20-day EMA near ₹3,40,000 acting as a strong dynamic support.
“A sustained trade above ₹3,50,000 keeps momentum decisively bullish. Immediate upside targets are placed at ₹3,65,000– ₹3,70,000, with scope to extend toward ₹3,80,000– ₹3,80,000– ₹3,90,000 over the next few months. Any dip toward the ₹3,40,000– ₹3,50,000 zone should continue to be viewed as a strong accumulation opportunity within the prevailing uptrend,” he further added.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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