Mumbai: Gold and silver prices surged significantly on Monday, amid growing geopolitical tensions and the US dollar’s steep fall.
MCX gold April futures gained 1.83 per cent to Rs 1,59,749 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 5.10 per cent to Rs 2,65,836 per kg.
Earlier in the day, gold had jumped 2 per cent while silver soared 6 per cent. Analysts attributed the surge to geopolitical tensions as US President Donald Trump’s 10-day deadline for a “meaningful deal” with Iran drew closer.
Iran has indicated it is prepared to make concessions on its nuclear programme in talks with the US in return for the lifting of sanctions and recognition of its right to enrich uranium, as it seeks to avert a US attack.
Further, the dollar fell after the US Supreme Court struck down a vast swathe of President Trump’s tariffs on Friday.
“The US Supreme Court’s decision to strike down a large swath of Trump’s tariffs has weakened his ability to threaten and impose tariffs at a moment’s notice, but it won’t end gnawing uncertainty for trade partners or companies,” said Manav Modi, Commodities Analyst, Motilal Oswal Financial services Ltd.
“Silver is witnessing a large draw of inventories from all warehouses especially, Comex very significantly indicating the tightness in supply and surge in demand as China remains shut,” the analyst said.
Concerns over slowing US economic growth are also supporting gold’s safe-haven appeal. The US GDP rose 1.4 per cent annually in the fourth quarter, down from 4.4 per cent in the July-September quarter and 3.8 per cent in the April-June quarter.
“Gold has support at Rs 1,54,400 and Rs 1,53,150 while resistance at Rs 1,59,100 and Rs 1,60,600. MCX silver has support at Rs 2,48,800 and Rs 2,42,000, and resistance is at Rs 2,57,700 and Rs 2,63,620,” an analyst said.
Markets remain keen on data from US factory orders, cues on consumer confidence data, and US Producer Price Index (PPI) data.
(IANS)
