Gold and silver prices surged more than 1 per cent to fresh record highs on Tuesday, supported by strong safe-haven demand amid escalating geopolitical tensions, particularly between the United States and Venezuela, and a weaker US dollar.
On the Multi Commodity Exchange (MCX), February gold futures rose 1.2 per cent to an all-time high of ₹1,38,381 per 10 grams and were trading 1.01 per cent higher at 10.48 am.
MCX silver jumped 1.7 per cent to a record high of ₹2,16,596 per kilogram and was up 1.30 per cent at the same time.
The US dollar index declined 0.20 per cent during the session, making precious metals cheaper for overseas buyers and adding to the upward momentum.
Analysts said heightened geopolitical uncertainty—driven mainly by rising US-Venezuela tensions—has underpinned the rally. According to media reports, the US Coast Guard this month seized a sanctioned supertanker carrying Venezuelan oil and attempted to intercept two additional Venezuela-linked vessels over the weekend, further escalating tensions.
“Safe-haven buying has marked the start of a holiday-shortened trading week amid elevated geopolitical risks,” said Rahul Kalantri, Vice-President (Commodities) at Mehta Equities Ltd.
Kalantri added that intensifying US-Venezuela tensions, along with the killing of a Russian army general in a bomb attack on Monday, have increased geopolitical risk and supported gold and silver prices.
Both precious metals also benefited from cooling US inflation data and the absence of any major surprises from the Bank of Japan’s policy meeting last week, he said.
Technically, gold has support in the ₹1,35,550–₹1,34,710 range, while resistance is seen at ₹1,37,650–₹1,38,470 levels. Silver has support at ₹2,11,150–₹2,10,280, with resistance placed at ₹2,13,810 and ₹2,14,970, according to analysts.
The rally in precious metals this year has been driven by aggressive central bank purchases, expectations of US Federal Reserve rate cuts, concerns over the impact of US tariffs, persistent geopolitical tensions, and strong inflows into gold and silver exchange-traded funds (ETFs).
Domestic spot gold prices have surged 76 per cent year-to-date, while international gold prices are up nearly 70 per cent in 2025, marking their strongest annual performance since 1979. Meanwhile, both domestic and global silver prices have gained around 140 per cent so far this year.
(IANS)
