Gold and silver prices climbed to historic levels on Tuesday as investors rushed towards safe assets amid a falling US dollar and growing expectations that the US Federal Reserve may cut interest rates later this year.
On the Multi Commodity Exchange (MCX), gold futures for February settled 1.48 per cent higher at Rs. 1,58,343 per 10 grams, according to reports.
Reports further said that silver saw a sharp spike, with March contracts jumping 6.56 per cent to Rs. 3,56,670 per kg. Earlier in the session, gold briefly touched a lifetime high of Rs. 1,59,820 before prices cooled slightly as traders booked profits.
The rally was not limited to Indian markets. Overseas, gold and silver also touched record levels as global tensions pushed investors towards safer investments. Fresh worries about a possible shutdown of the US government, along with renewed trade threats from US President Donald Trump, unsettled markets. Trump announced plans to impose a 25 per cent tariff on automobiles, timber and pharmaceutical imports from South Korea. He also warned Canada of a steep 100 per cent tariff if it signs a trade agreement with China.
In the US commodities market, April gold futures rose nearly 1 per cent to $5,113.70 per troy ounce. The dollar index slipped by about 0.1 per cent, making precious metals more attractive for buyers using other currencies.
Market experts say strong demand for safe-haven assets, continuous buying by central banks and expectations of softer global monetary policy are driving prices higher. Silver on the COMEX exchange crossed the $99 mark, setting a new all-time high.
Investors are now closely watching the ongoing two-day meeting of the US Federal Open Market Committee (FOMC). While interest rates are expected to remain unchanged for now, traders are betting on at least two rate cuts later this year.
Rahul Kalantri, Vice President – Commodities at Mehta Equities Ltd, was quoted in the section of the media saying that market attention has shifted firmly towards the Federal Reserve’s policy stance. He added that speculation around political pressure on the US central bank has strengthened demand for silver and other precious metals.
According to him, gold has strong support between Rs. 1,57,050 and Rs. 1,55,310, while resistance is seen at Rs. 1,59,850 and Rs. 1,62,950. Silver, meanwhile, has support at Rs. 3,38,810 and Rs. 3,22,170, with resistance levels at Rs. 3,55,810 and Rs. 3,62,470.
Another analyst was quoted saying that he believes gold prices could move towards Rs.1,65,000 per 10 grams, while silver may climb to Rs. 3,65,000 per kg in the near term. However, a recent report cautioned that silver’s dramatic rise—from around Rs. 60,000 to over Rs. 3,20,000—could result in a phase of consolidation or portfolio rebalancing at elevated levels.
Also Read: Gold, Silver Outshine All Assets In 2025, Deliver Massive Gains https://www.vibesofindia.com/gold-silver-outshine-all-assets-in-2025-deliver-massive-gains/
