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Gold, Silver Hit Record Highs as Dollar Weakens, Fed Cuts Eyed

Gold and silver prices surged to record highs in both domestic and international markets. The rally is fueled by persistent weakness in the US dollar and expectations of interest rate cuts from the US Federal Reserve. Geopolitical tensions, including renewed US trade threats, have driven investors toward safe-haven assets like precious metals. Analysts provide key support and resistance levels, forecasting further gains for both metals in upcoming sessions.

Key Points: Gold & Silver Prices Surge to New Highs Amid Dollar Weakness

  • US dollar weakness lifts prices
  • Fed rate cut expectations support rally
  • Geopolitical risks boost safe-haven demand
  • Analysts see further upside potential
2 min read

Gold, silver continue to touch new highs as US dollar weakens

Gold and silver prices reach record highs driven by a weak US dollar, Fed rate cut expectations, and geopolitical trade tensions. Get the latest analysis.

"Market focus has now shifted to the upcoming Federal Reserve decision... triggering strong inflows into silver and other precious metals. - Rahul Kalantri"

Mumbai, Jan 27

Gold and silver prices surged to record highs on Tuesday, amid persistent weakness in the US dollar and expectations of rate cuts by the US Federal Reserve.

MCX gold February futures rose 1.48 per cent to Rs 1,58,343 per 10 grams. Meanwhile, MCX silver March futures rose 6.56 per cent to Rs 3,56,670 per kg.

Earlier in the day, gold had peaked to Rs 1,59,820 per 10 grams, up 2.4 per cent, before profit-booking eased the price level.

International markets also saw gold and silver touching record highs, as geopolitical risks drove investors to safe-haven assets. Renewed fears of a government shutdown in the US and President Donald Trump's new threats of 25 per cent tariffs on South Korean automobiles, lumber, and pharmaceutical imports added fuel to trade tensions. Trump also warned Canada of a 100 per cent tariff if it makes a deal with China.

US gold futures April contracts rose around 1 per cent to $5,113.70 per troy ounce as the dollar index eased by 0.1 per cent, making bullion cheaper in overseas currencies.

Persistent safe-haven demand, steady central-bank accumulation, and expectations of accommodative global monetary conditions continue to underpin prices.

COMEX Silver has surged beyond the $99 mark, registering fresh lifetime highs.

Meanwhile, the two-day Federal Open Market Committee (FOMC) in the US this week is expected to hold interest rates steady but traders expect 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, Mehta Equities Ltd.

"Gold has support at Rs 1,57,050 to Rs 1,55,310 zone while resistance at Rs 1,59,850 and Rs 1,62,950. Silver has support at Rs 3,38,810 and Rs 3,22,170 while resistance at Rs 3,55,810 and Rs 3,62,470," the analyst said.

Another analyst forecasts that gold is expected to hit Rs 1,65,000 per 10 gram and silver to reach Rs 3,65,000 per kg in the upcoming sessions.

Silver's sharp surge from Rs 60,000 to Rs 3,20,000 could lead to a phase of consolidation at elevated levels or rebalancing by market participants becomes more likely, according to a recent report.

- IANS

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Reader Comments

R
Rajesh Q
As a small investor, I moved some funds to silver ETFs last month. The 6.56% jump in a day is unreal! But articles like this always come after the peak. Where was this analysis when silver was at Rs 60,000? Retail investors are always the last to know.
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Aditya G
The US Fed's policies and Trump's trade wars directly hit our savings here in India. When the dollar weakens, our import bill for oil and gold goes up, feeding inflation. It's a global chain reaction. We need to focus on strengthening the rupee.
S
Sarah B
Watching from London. The "safe-haven" demand is a clear signal of global uncertainty. While the short-term gains are impressive, the long-term economic reasons behind this surge are quite worrying. Stability is better for everyone than volatile precious metal prices.
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Karthik V
Respectfully, the article could do a better job explaining what this means for the common person. Beyond investor talk, how does this affect loan rates, fixed deposits, or the price of electronics (which use silver)? The macro view is clear, but the micro impact on household budgets is missing.
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Nisha Z
Silver at nearly Rs 3.6 lakh per kg! I remember my father buying it for less than a lakh. This isn't just an investment trend; it's a massive wealth transfer. Families holding physical silver as part of their tradition are sitting on fortunes they never actively managed.

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