Gold near Rs 1.8 lakh, silver above Rs 4 lakh—What’s fueling the record rally?

Gold and silver prices are on a strong upward run, touching fresh all-time highs in both domestic and international markets. Rising global uncertainty and growing worries about paper currency have pushed investors toward precious metals, which are seen as safer assets during volatile times.

Silver saw a sharp fall from record highs, slipping by nearly Rs 52,000 from its all-time high value. Currently, silver is trading around Rs 3,69,372 with a drop of 4.15 per cent on MCX, while gold also dropped by over Rs 13,000 from its peak.

The white metal, silver, surged to Rs 4,20,048 per kg (all-time high), while gold climbed to Rs 1,80,779 per 10 grams, marking record levels. Even after these sharp gains, prices continue to stay strong, showing that investor interest remains high.

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During the day, gold had climbed close to Rs 1.8 lakh and silver had crossed Rs 4 lakh, but both precious metals later witnessed a sharp fall.

Why are gold and silver prices rising so fast?

The reason for this sudden increase is that people no longer trust paper currencies. Investors worldwide are transferring their funds into physical assets such as gold and silver to safeguard their financial resources.

Safe-haven buying has increased due to ongoing geopolitical tensions and economic uncertainty. Adding to this, the U.S. The Federal Reserve has voted not to increase interests saying it is very unlikely that rates will increase anytime soon. These signals have supported precious metal prices worldwide.

The Fed Chairman said the U.S. economy is in good shape and inflation is under control, though tariff-related inflation remains. He also suggested that inflation could stabilise soon, leaving room for monetary easing, which further boosted gold and silver prices.

How are gold and silver performing in global markets?

On Wednesday, both metals settled higher in international markets. Gold April futures closed at $5,340.20 per troy ounce, rising 4.29 per cent. Silver March futures settled at $113.535 per troy ounce, up a sharp 7.15 per cent.

These strong gains show that global demand for precious metals remains firm, even at record-high price levels. However, experts warn that price swings are likely to continue in the near term.

Gold and silver in the domestic markets?

Domestic markets also closed on a positive note. Gold February futures on MCX settled at Rs 1,65,915 per 10 grams, 5.21 per cent, while silver March futures ended at Rs 3,85,366 per kg, up 8.16 per cent.

Currently, gold is trading around Rs 1,65,900, up 5.62 per cent, while silver is trading near Rs 3,69,372, showing a gain of 5.38 per cent.

There has been a constant increase in foreign purchases over the years, intending to cope with global anxiety.

Will gold and silver prices stay volatile?

Experts say price volatility is likely to remain high. Gold is expected to hold support around $5,140 per troy ounce, while silver may find support near $98 per troy ounce on a weekly closing basis.

For today’s session, gold has support at $5,220–$5,140 and resistance at $5,500–$5,650 per troy ounce. Silver has support at $110.00–$106.60 and resistance at $118.00–$123.00 per troy ounce.

On MCX, gold has support at Rs 1,64,000–Rs 1,61,600 and resistance at Rs 1,70,000–Rs 1,75,000. Silver support stands at Rs 3,74,000–Rs 3,64,800, while resistance lies between Rs 4,00,000–Rs 4,14,000.

Should investors buy gold and silver now?

Market experts suggest purchasing gold when its closing price remains above Rs 1,64,400 because they expect the price to reach between Rs 1,70,000 and Rs 1,75,000. Investors should purchase silver when its price stays above Rs 3,64,000 because they expect the price to reach between Rs 4,00,000 and Rs 4,10,000.

Gold and silver will continue to attract attention because global uncertainty remains high, although their prices will experience sudden fluctuations in the upcoming period.