Gold, Silver Prices Hit Record Highs on MCX: What’s fueling the rally and what should investors do now?

Silver and gold futures extended gains on Monday, hitting record levels amid heightened geopolitical tensions, expectations of US interest rate cuts and a weaker dollar. Gold and silver prices on MCX jumped sharply on Monday, with silver crossing Rs 13,000 and gold rising above Rs 2,500.

Geopolitical tensions and economic uncertainty supported the rally in precious metals—reports of unrest in Iran and threats of US military action added to risk aversion. Investors also reacted to signs of slowing US employment growth, which increased expectations of at least two Federal Reserve rate cuts this year.

Gold and Silver Price Today

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MCX silver prices surged sharply on Monday, rising over 4.76 per cent amid global uncertainties. Silver opened higher by Rs 10,109, or about 4 per cent, at Rs 2,62,834 per kg compared with its previous close of Rs 2,52,725. The metal touched an intraday high of Rs 2,65,390 per kg, which also marked its 52-week high.

MCX gold prices also opened firm, gaining over 1.80 per cent. Gold opened at Rs 1,39,600 per 10 grams, up 0.56 per cent from its previous close of Rs 1,38,819. The price later climbed to an intraday high of Rs 1,41,388 per 10 grams, hitting its 52-week high.

In the international markets, gold prices crossed the $4,600 per ounce level for the first time. Spot gold rose 1.3 per cent to $4,469.49 per ounce, after touching a record high of $4,600.33 earlier in the session.

US gold futures for February delivery gained 2 per cent to $4,591.10 per ounce. Spot silver jumped 3.5 per cent to $82.72 per ounce, after hitting an all-time high of $83.96.

What's Fueling Rally?

A retreat in the dollar from a one-month high further supported prices, as non-yielding assets tend to perform better in a low-interest-rate environment. Manoj Kumar Jain said, “Gold and silver gained last week amid very high volatility due to global uncertainty and geopolitical tensions. Trend visible.”

He said precious metals settled on a positive note in both international and domestic markets and added that safe-haven demand has increased due to rising uncertainty in global financial markets.

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What Should Investors Do Now?

Jain said that gold has support at $4,484–4,460 and resistance at $4,522–4,555 per troy ounce, while silver has support at $78.00–76.30 and resistance at $81.40–83.80 per troy ounce in the current session.

On MCX, Jain said gold has support at Rs 1,37,850–Rs 1,36,880 and resistance at Rs 1,39,670–Rs 1,40,520, while silver has support at Rs 2,45,500–Rs 2,38,250 and resistance at Rs 2,58,150–Rs 2,63,550.

He said his buying recommendation on gold for targets of Rs 1,40,000–Rs 1,41,400–Rs 1,42,500 remains active, with a revised stop loss at Rs 1,37,700. He also suggested buying silver on dips around Rs 2,45,500–Rs 2,40,000 with a stop loss below Rs 2,38,000 for targets of Rs 2,55,500–Rs 2,58,000.