Mumbai: Gold and silver prices witnessed a dramatic surge on Monday, driven by escalating geopolitical tensions, a sharp fall in the US dollar, and concerns over global economic growth. On India’s Multi Commodity Exchange (MCX), both precious metals climbed close to record highs, triggering strong investor interest.
Market Snapshot
Gold futures for April delivery on MCX rose 1.83%, touching ₹1,59,749 per 10 grams during the session, after briefly gaining nearly 2% intraday. Silver outperformed gold, with March futures jumping 5.10% to ₹2,65,836 per kilogram. Compared to Friday’s close of ₹2,52,836, silver posted a massive single-day gain of ₹13,000.
According to analysts at Motilal Oswal Financial Services, silver prices climbed as much as 6% during intraday trade, reflecting intense buying momentum.
What’s Driving the Rally?
Rising US–Iran Tensions:
Market participants point to growing tensions between the United States and Iran as a key catalyst. With the deadline set by former US President Donald Trump for a potential agreement approaching, fears of military conflict have pushed investors toward safe-haven assets like gold.
Dollar Weakness After Court Ruling:
The US dollar index weakened after the Supreme Court of the United States struck down a major portion of tariff measures, weighing on the greenback. A weaker dollar typically makes gold cheaper for overseas buyers, boosting global demand.
Global Silver Supply Crunch:
Experts highlight a sharp decline in global silver inventories, particularly at major warehouses such as COMEX. With Chinese markets shut and supply tightening, the demand–supply imbalance has amplified price volatility.
Signs of US Economic Slowdown:
Adding to the bullish sentiment, US GDP growth slowed to 1.4% in the fourth quarter, down sharply from earlier quarters. Concerns over economic deceleration have further strengthened the appeal of precious metals as a hedge.
What to Watch Next
Markets are now closely tracking upcoming US data releases, including factory orders, consumer confidence, and the Producer Price Index (PPI). Analysts caution that until geopolitical risks ease and macroeconomic clarity improves, gold and silver prices are likely to remain volatile.
For now, key resistance levels are seen around ₹1,60,600 for gold and ₹2,63,620 for silver, with traders bracing for continued swings in the days ahead.