Gold, Silver Hit 1-Week High As Geopolitical Tensions Drive Safe-Haven Demand
Gold and silver prices surged to 1-week highs on MCX as geopolitical tensions following Venezuela's President Maduro's reported capture by US authorities triggered strong safe-haven demand. Gold February futures rose 0.33% to Rs 1,38,578 per 10g while silver March futures jumped 1.26% to Rs 2,49,251 per kg, with analysts recommending buy-on-dips strategy amid continued volatility.
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Gold and silver prices surged to their highest levels in a week as mounting geopolitical tensions triggered strong safe-haven demand across precious metals markets. On the Multi Commodity Exchange (MCX), gold February futures traded at Rs 1,38,578.00 per 10 grams, up Rs 458.00 or 0.33%, while silver March futures jumped Rs 3,096.00 or 1.26% to Rs 2,49,251.00 per kilogram. The gains reflect continued defensive positioning by investors responding to heightened global uncertainty and volatility.
MCX Futures Performance
The precious metals demonstrated strong momentum in Tuesday's trading session, building on Monday's significant gains driven by geopolitical developments.
| Metal: | Current Price | Change | Change (%) |
|---|---|---|---|
| Gold February: | Rs 1,38,578/10g | +Rs 458 | +0.33% |
| Silver March: | Rs 2,49,251/kg | +Rs 3,096 | +1.26% |
Venezuela Crisis Triggers Market Rally
The surge came after the US reportedly captured Venezuela's President Nicolas Maduro over drug trafficking charges, creating a wave of uncertainty across global markets. Gold February futures settled at Rs 1,38,120.00 per 10 grams with a 1.74% gain on Monday, while silver March futures jumped 4.16% to close at Rs 2,46,155.00 per kilogram on the MCX. Swiss authorities reportedly ordered a freeze on Maduro's assets, potentially deepening safe-haven flows into precious metals.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted, "This act could further boost safe-haven buying for precious metals." He also highlighted currency impact, stating, "Weakness in the rupee is supporting gold and silver prices domestically." The US Dollar Index (DXY) hovered near the 98.25 mark, slipping marginally by 0.02%.
Trading Strategy and Technical Levels
Despite heightened volatility, analysts remain optimistic about support levels. Jain expects silver to hold support at $65.00 per troy ounce and gold around $4,240.00 per troy ounce on a closing basis. He recommends a "buy-on-dips" approach with specific trading ranges.
| Strategy: | Entry Level | Stop Loss | Target |
|---|---|---|---|
| Gold Buy: | Rs 1,37,400-1,36,600 | Rs 1,35,800 | Rs 1,38,800-1,39,500 |
| Silver Buy: | Rs 2,42,000-2,38,000 | Rs 2,32,000 | Rs 2,48,000-2,52,000 |
Physical Market Rates
Physical gold prices across major Indian cities reflect the current market dynamics, with regional variations based on local demand and supply factors.
| City: | 22 Carat (8g) | 24 Carat (8g) |
|---|---|---|
| Delhi: | Rs 1,03,624 | Rs 1,11,656 |
| Mumbai: | Rs 1,02,864 | Rs 1,10,784 |
| Chennai: | Rs 1,02,560 | Rs 1,10,488 |
| Hyderabad: | Rs 1,02,680 | Rs 1,10,608 |
Market Outlook
The precious metals continue to benefit from multiple supportive factors including geopolitical tensions, currency weakness, and safe-haven demand. Trump's confrontational rhetoric toward Colombia and Mexico regarding drug shipments has added to regional instability concerns, further supporting bullion prices. With key technical support levels holding firm and geopolitical uncertainties persisting, the upward momentum in gold and silver appears likely to continue in the near term.
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