NewKerala.com

Gold & Silver Prices Soar on Safe-Haven Demand, Geopolitical Tensions

Gold and silver prices continued their rally on Tuesday, driven by heightened geopolitical uncertainty and expectations of global monetary easing. MCX gold February futures rose 0.35% to Rs 1,38,600 per 10 grams, while silver March futures jumped 1.49% to Rs 2,49,820 per kg, nearing December's record highs. Analysts attribute the surge to structural factors like sustained central bank purchases and robust industrial demand for silver, rather than short-term speculation. Investors are now focused on upcoming U.S. employment data for clues on the Federal Reserve's policy direction.

Key Points: Gold, Silver Rally on Safe-Haven Demand & Fed Easing Hopes

  • MCX gold futures surge 0.35%
  • Silver futures rise 1.49% near record highs
  • Geopolitical uncertainty boosts safe-haven demand
  • Central bank purchases provide structural support
  • Investors await key U.S. jobs data
2 min read

Precious metal prices continue rally fuelled by safe‑haven demand

Gold and silver prices surge amid geopolitical risks, central bank buying, and expectations of global monetary easing. Get latest MCX rates and analysis.

"Sustained central-bank gold purchases, elevated geopolitical uncertainty, and expectations of global monetary easing continue to reinforce gold's role as a core portfolio hedge. - Analysts"

New Delhi, Jan 6

The price of gold and silver continued to surge on Tuesday amid elevated geopolitical uncertainty, and expectations of global monetary easing.

Threats from the US President Donald Trump to Colombia, Cuba, and Mexico alleging drug shipments boosted the safe haven demand of precious metals.

MCX gold February futures surged 0.35 per cent to Rs 1,38,600 per 10 grams around 1:30 pm, while MCX silver March futures rose 1.49 per cent to Rs 2,49,820 per kg, nearing the record high levels in December of Rs 1,40,465 per 10 grams and Rs 2,54,174 per kg.

The price of 10 grams of 24-carat gold was at Rs 1,36,909 on Tuesday up from Rs 1,35,721 at the previous day's close, according to data published by the India Bullion and Jewellers Association (IBJA).

Analysts said that the ongoing surge in gold and silver is being driven by structural demand rather than short-term speculative activity. Sustained central-bank gold purchases, elevated geopolitical uncertainty, and expectations of global monetary easing continue to reinforce gold's role as a core portfolio hedge.

Silver has additional support from robust industrial demand involving solar energy, electric vehicles, AI infrastructure, and broader electrification themes.

"Reports of Swiss banks moving to seize Maduro-linked assets have also supported bullion prices. Meanwhile, rupee weakness continued to lend support to domestic gold and silver," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

"Gold has support at Rs 1,37,150-1,36,310 while resistance at Rs 1,39,350-1,40,670. Silver has support at Rs 2,42,810 to 2,40,170 zone while resistance at Rs 2,49,810 to 2,51,470 zone," Kalantri added.

Investors await crucial U.S. employment data later this week to gauge the Federal Reserve's future policy direction.

Gold surged nearly 66 per cent in CY25, surpassing $4,500 per ounce, while silver outperformed with a 171 per cent rise.

- IANS

Share this article:

Reader Comments

R
Rohit P
As a small investor, these prices are scary. Wanted to buy some gold ETF for my portfolio but now it feels like I've missed the bus. Silver seems to have more upside with industrial use, but the volatility is too much for my risk appetite.
A
Aman W
The article mentions the rupee weakness supporting domestic prices. This is a key point often missed. Our import-dependent economy means global prices plus currency fluctuations hit us doubly. Policy makers should focus on strengthening the rupee.
S
Sarah B
Living in India for 5 years now, the cultural significance of gold here is fascinating. It's not just a commodity; it's deeply woven into the social fabric. This "structural demand" the analysts mention is very real. The price may fluctuate, but the desire to own it doesn't.
K
Karthik V
Silver at nearly 2.5 lakh per kg! 😳 I remember when it was half that just a few years ago. The solar and EV angle makes sense for long-term hold. Maybe time to consider some sovereign gold bonds instead of physical for better returns and safety.
N
Nikhil C
While gold is a safe haven, at these levels, the risk-reward seems skewed. A small correction in global tensions or a strong US jobs report could trigger profit-booking. New investors should be cautious and maybe wait for a dip, even if it's a small one.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50