Gold prices experienced a remarkable surge in India on Monday, with significant gains recorded across all categories as both domestic and international markets reflected strong bullish sentiment driven by technical strength and global uncertainty.

Current Gold Rates in India

The domestic gold market witnessed substantial price increases across different purities on Monday. The following table shows the current rates and overnight changes:

The 24-karat gold for 100 grams jumped by ₹19,100.00 overnight, rising from ₹14,37,800.00 to ₹14,56,900.00. Similarly, 22-karat gold for 100 grams increased by ₹17,500.00 from ₹13,18,000.00 to ₹13,35,500.00, while 18-karat gold for 100 grams gained ₹14,300.00 from ₹10,78,400.00 to ₹10,92,700.00.

MCX Gold Technical Analysis

According to Abhishek M Pelu, Research Analyst at Way2Wealth Brokers, MCX Gold maintains its uptrend despite recent negative price action in the last two sessions. The metal continues trading above the 10 and 20 DEMA lines, displaying a bullish higher-high and higher-low structure that indicates positive trend and strong momentum.

Traders can consider buying MCX Gold for the specified targets, with sustained weakness below ₹1,40,250.00 warranting a review of the current bullish outlook.

Spot Gold Market Outlook

ICICI Securities research analysts indicate that spot gold is likely to trade with positive bias and rise further towards the $2,700.00 level, supported by dollar weakness. The safe-haven demand may increase due to concerns over potential trade tensions between the US and Europe.

Trump announced plans to impose additional 10% import levies from February 1 on goods from eight European nations, with rates potentially rising to 25% on June 1 if no agreement is reached, as part of efforts related to Greenland acquisition discussions. France has proposed responding to these threats with various economic countermeasures.

Supporting Factors

Several factors continue supporting gold prices globally:

• Political instability in Venezuela
• Ongoing geopolitical tensions in the Middle East
• Concerns over Federal Reserve independence
• Weakening US dollar
• Increased safe-haven demand amid trade uncertainty

The combination of technical strength, global uncertainty, and falling US dollar continues to bolster bullish sentiment in both domestic and international gold markets, with the metal maintaining its position above key short-term moving averages despite occasional profit-booking activities.

Silver prices in India have witnessed an extraordinary surge of approximately ₹1 lakh per kg within a single month, propelling prices beyond the ₹3 lakh per kg milestone. This dramatic price movement has created significant shifts in market dynamics, affecting both physical demand patterns and investor behavior across different segments of the silver market.

Price Performance and Market Outlook

The domestic silver market has experienced unprecedented price levels, with current rates exceeding ₹3 lakh per kg. International markets reflect similar strength, with silver trading around $93-94 per ounce. Kishore Runwal, CEO of Anmol Silver, anticipates further price appreciation, projecting silver prices could reach ₹3.30 lakh per kg.

Physical Demand Dynamics

The sharp price rally has created contrasting demand patterns across different markets. Physical silver currently trades at a discount in Indian domestic markets, while commanding premiums in international markets. In China, silver sells at a premium of approximately ₹10,000, highlighting regional price disparities.

Investor participation in India has become limited due to elevated price levels. The high prices have particularly impacted the silver articles segment, where demand has declined noticeably. Runwal noted that while turnover levels remain similar due to higher prices, actual volumes have fallen significantly.

Segment-wise Performance

Different silver market segments are responding variably to the price surge:

• Silver Articles: Sales have slowed considerably with declining volumes
• Silver Jewellery: Demand remains relatively stable despite price increases
• ETF Investments: Have shown increased activity and stronger performance
• Physical Trading: Currently at discount levels in domestic markets

Import Trends and Trade Patterns

Despite the substantial price increases, India's silver imports have maintained robust levels, remaining close to the previous year's import volumes. This contrasts sharply with gold imports, which have experienced a decline during the same period. The sustained import levels suggest continued underlying demand despite the cooling physical market conditions.

The current market scenario reflects the complex interplay between price movements and demand dynamics in India's precious metals sector, with silver's dramatic price appreciation creating both opportunities and challenges across different market segments.