Gold and silver prices touched record highs on Monday as markets reacted to the US Justice Department’s escalation of tensions with the Federal Reserve and intensifying protests in Iran that heightened geopolitical risks.
MCX gold February futures surged 1.46 per cent to Rs 1,40,838 per 10 grams, while MCX silver March futures rose 3.66 per cent to Rs 2,61,977 per kg.
Spot gold price surged 1.45 per cent to $4,575.82 an ounce, after hitting a fresh record high of $4,601.17. Silver prices gained 4.85 per cent to touch $83.19, after hitting a record high of $83.88.
Fed Chair Jerome Powell disclosed that the central bank had received grand jury subpoenas from the Justice Department tied to his June congressional testimony on renovations at the Fed’s headquarters. The development signalled a sharp intensification of US President Donald Trump’s confrontation with the Fed and renewed concerns about the central bank’s independence.
The surge to fresh record highs was supported by rising geopolitical risks, increasing political pressure on the US Federal Reserve, and weaker-than-expected US employment data, which strengthened safe-haven demand, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Meanwhile, deadly demonstrations in Iran amplified safe-haven flows, with markets weighing the chances of political upheaval and its implications for oil supplies. Trump had on Sunday indicated considering options on Iran, comments that added to uncertainty alongside other geopolitical flashpoints.
Last week’s US jobs report showed weaker-than-expected payroll gains, reinforcing expectations that the Federal Reserve will deliver further interest-rate cuts this year.
Gold gained over 4 per cent last week, while silver rallied more than 7 per cent. Russia’s war in Ukraine, the US capture of Venezuela’s President Nicolas Maduro, and Washington’s renewed signals over taking control of Greenland also acted as tailwinds for the rally of precious metals.
— IANS
