Editor’s Note
This article highlights the unprecedented surge in precious metals, with gold and silver posting record gains as investors seek safe havens amid ongoing stock market volatility.
New Delhi (VSRSN News)
The rally in gold and silver shows no signs of stopping. Gold prices surged by Rs 16,000 today, while silver climbed by Rs 21,000, crossing the Rs 4 lakh mark. While the stock market decline continues unabated, a stormy rally persists in gold and silver. Until now, gold was rising by only Rs 3,000 to Rs 5,000, but today gold has shown a record-breaking surge. In the multi-commodity market, gold rose by nearly Rs 16,000, while silver gained Rs 20,000 per kg, crossing the Rs 4 lakh level. This is the first time silver prices have crossed Rs 4 lakh.
For the March futures contract, silver’s price on Thursday rose by Rs 21,276 to Rs 4,06,642, which is its all-time high level. Similarly, for the April 2 futures contract, gold rose by Rs 15,900 to reach Rs 1,93,096 per 10 grams. Given such a sharp rally, experts are advising investors to remain cautious. Let’s find out what reasons experts are citing for this massive surge in gold and silver.
On MCX, silver was priced at Rs 3.18 lakh on January 21, which has now risen by Rs 88,000 to cross Rs 4.05 lakh. Meanwhile, gold was at Rs 1.60 lakh on January 21, which has now risen by Rs 33,000 to reach Rs 1.93 lakh.
Amid rising geopolitical tensions, sustained safe-haven demand is supporting the rally in gold and silver. The US Federal Reserve has also decided to keep interest rates unchanged, which has supported the rally in gold, silver, and other metals. Additionally, signals indicate there is no room for future rate hikes, which has increased investor interest in precious metals. US President Donald Trump is warning Iran that time is running out to negotiate a deal on its nuclear program, leading to increased demand for safe investments. In the international market, gold and silver have also reached new record highs. Spot gold rose nearly 3% to a record high of $5,591.61. Meanwhile, silver rose 1.3% to $118.061 per ounce. The dollar is showing strength, but the rupee is continuously falling. Today, the rupee reached a new record low against the dollar, crossing the 92 rupees level.
They say high volatility is being observed in gold and silver, but silver appears to be finding support at $98 and gold at $5000.