Investors flocked to precious metals for the second straight session on Thursday, 19 February, as rising geopolitical tensions kept demand for safe-haven assets elevated. Investors also evaluated the Federal Reserve’s monetary policy path.
Extending its winning run to a second day, the April futures contract on Comex gained another $31.4 per troy ounce to hit an intraday high of $5,040. Overnight, gold prices jumped 2%, marking the biggest intraday gain in the past 10 trading sessions.
Tensions in the Middle East, which had appeared to ease recently, resurfaced after media reports suggested that the US military could launch a strike on Iran as soon as this weekend.
The development comes days after US and Iranian officials met in Geneva and held indirect talks on Tuesday, with Tehran describing them as “more constructive” than the previous one earlier this month, while Vice President JD Vance said Iran failed to address US red lines, and President Donald Trump reiterated that military force remains an option. Both sides have reportedly heightened military activity.
Meanwhile, the US Federal Reserve’s January minutes showed that it largely united on holding interest rates steady but divided over what comes next, with “several” open to rate hikes if inflation remains elevated, while others were inclined to support further cuts if inflation recedes.
Markets currently expect this year’s first interest rate cut to be in June, according to CME’s FedWatch Tool.
Comex silver advances another $2
Silver, which has remained more volatile than gold, also traded higher, with March delivery contract on Comex rising $1.8 per troy ounce to touch an intraday high of $79.40. Thursday’s advance builds on a $4 jump in the previous session.
Ponmudi R, CEO of Enrich Money, said COMEX Gold is trading near the $4,850–$5,100 zone after a sharp correction from recent highs above $5,500–$5,600. The broader uptrend remains intact, with the recent pullback reflecting profit booking and healthy price digestion.
According to Ponmudi, prices have slipped below key moving averages and are now consolidating at those levels, indicating a phase of stabilization after recent weakness.
He highlighted that strong buying interest is visible in the $4,500–$4,700 support band, and sustained stability above this zone could set the stage for renewed upside momentum. A breakout above $5,100–$5,200 would open the path toward a retest of record highs.
Turning to silver, he said that COMEX Silver is trading near the $73–$80 zone after a sharp correction from record highs above $121. While the broader bullish structure remains intact on higher timeframes, he observed that the steep pullback has pushed prices below key moving averages, indicating short-term bearish pressure and an extended corrective phase.
Strong buying interest is visible in the $65–$70 support band, aligned with prior swing lows and long-term trend support. A sustained hold above this base, followed by a recovery and close above $85–$92, could revive upside momentum toward $95–$105 and potentially retest previous highs.
He maintained that the medium- to long-term outlook remains constructive, supported by steady industrial demand and structural supply constraints, despite elevated volatility.
MCX gold jumps over ₹1,400 per 10g; silver nears ₹2.50 lakh per kg
In the domestic market, April gold futures gained ₹1,424 per 10 grams to hit an intraday high of ₹1,57,185 earlier in the day.
The March silver contract also strengthened by ₹4,328 per kilogram to reach an intraday high of ₹2,48,596, extending its winning run to a second session.
(With inputs from Reuters)
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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