Gold, Silver Touch New Record Highs as Global Uncertainty Fuels Safe-Haven Demand

Mumbai- Gold and silver prices scaled fresh record highs on Monday as heightened global uncertainties, including political tensions in the US and escalating unrest in Iran, boosted demand for safe-haven assets.

On the Multi Commodity Exchange (MCX), gold February futures jumped 1.46 per cent to Rs 1,40,838 per 10 grams, while silver March futures surged 3.66 per cent to Rs 2,61,977 per kg.

In the international market, spot gold rose 1.45 per cent to $4,575.82 an ounce after touching a new all-time high of $4,601.17. Silver prices climbed 4.85 per cent to $83.19, having earlier hit a record high of $83.88.

Investor sentiment was rattled after US Federal Reserve Chair Jerome Powell revealed that the central bank had received grand jury subpoenas from the US Justice Department related to his June congressional testimony on the renovation of the Fed’s headquarters. The development signalled an escalation in US President Donald Trump’s confrontation with the Federal Reserve, reviving concerns over the central bank’s independence.

“The rally to record highs has been driven by rising geopolitical risks, mounting political pressure on the US Federal Reserve, and weaker-than-expected US employment data, all of which have strengthened safe-haven demand,” said Rahul Kalantri, Vice President (Commodities) at Mehta Equities Ltd.

Safe-haven buying was further supported by violent protests in Iran, with markets assessing the risks of political instability and its potential impact on oil supplies. Trump’s remarks on Sunday indicating that he was considering options on Iran added to market uncertainty, alongside other ongoing geopolitical flashpoints.

Adding to bullish sentiment, last week’s US jobs data showed weaker-than-expected payroll growth, reinforcing expectations that the Federal Reserve may implement further interest rate cuts this year.

Analysts said gold is finding support in the range of Rs 1,34,550–1,32,310, with resistance seen between Rs 1,41,350 and Rs 1,43,670. Silver support is placed in the Rs 2,48,810–2,44,170 zone, while resistance lies between Rs 2,55,810 and Rs 2,59,470.

Gold gained over 4 per cent last week, while silver rallied more than 7 per cent. Ongoing geopolitical tensions, including the Russia-Ukraine conflict, developments involving Venezuela, and renewed signals from Washington on Greenland, have further contributed to the bullish momentum in precious metals.

With inputs from IANS