Gold Jumps 2.4% as Silver Rallies 7%, Dollar Weakness and Fed Rate-Cut Hopes Fuel Bullion Surge

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Gold prices climbed again on Tuesday as bullion markets responded to strong safe-haven demand and global risk sentiment. MCX gold futures for February delivery reached levels close to their highest ever seen in domestic markets.

Meanwhile, MCX silver futures jumped more than 6%, pushing prices above the Rs. 3.5 lakh per kilogram mark and reinforcing the sharp momentum in precious metals.

MCX Gold and Silver See Sharp Gains

On Tuesday morning, gold prices on the MCX moved up sharply. February futures jumped by nearly Rs. 4,000 in a single session. Prices reached around Rs. 1,59,820 per 10 grams. The gain stood at more than 2.4% in a single session. Traders increased positions as risk sentiment stayed weak across global markets. This strong rise showed steady buying from traders and investors. Many preferred gold as stock markets remained uncertain.

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Silver prices rose even faster than gold. MCX silver March futures jumped by more than 7%. Prices surged by over Rs. 25,000 and touched a fresh record of about Rs. 3,59,800 per kilogram. This move took silver well above the Rs. 3.5 lakh mark. Strong buying and high interest pushed prices higher throughout the session.

Global Cues and Dollar Weakness Support Bullion

Global markets also supported the rally. International gold prices stayed near their highest levels. US gold futures moved above $5,100 per ounce. A weak US dollar supported bullion prices. When the dollar falls, gold and silver become cheaper for buyers using other currencies. This usually increases demand.

Trade tensions added pressure to global markets. New tariff threats from the US raised concerns about global trade. These worries made investors nervous and reduced interest in risky assets. During such times, gold and silver attract more buyers as they hold value better.

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Investor Outlook Remains Firm Amid Uncertainty

The US Federal Reserve meeting also stayed in focus. Markets expected the central bank to keep interest rates steady. Still, hopes of rate cuts later this year supported gold prices. Lower interest rates make gold more attractive since it does not pay interest like bonds.

Political developments in the US added more uncertainty. Discussions around leadership changes at the Federal Reserve kept markets cautious. This environment increased demand for physical assets such as gold and silver.

Kalantri Analysts shared key price levels to watch. Gold showed support near $5,000 and $4,915 internationally, while resistance stood near $5,120 and $5,200. In Indian markets, gold found support near Rs. 1,57,000 and resistance close to Rs. 1,62,900. Silver showed support near $107 globally and resistance near $115. On MCX, silver faced resistance near Rs. 3,62,000.

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Experts shared views on price levels. Gold found support at lower levels and faced resistance near current highs. Silver showed strong support after breaking past key levels. Many analysts suggested buying gold and silver during small price drops as long as global risks remain high.

Some market experts suggested buying gold and silver on small price dips. Targets remained higher if prices stayed above key support levels. Gold could move toward Rs. 1,65,000 per 10 grams, while silver could test Rs. 3,65,000 per kilogram in the coming sessions, according to Manoj Kumar Jain of Prithvifinmart Commodity Research.

In Indian cities, gold prices stayed high across major markets. Both 24-carat gold traded near Rs. 1.62 lakh per 10 grams and 22-carat gold stayed near Rs. 1.48 lakh per 10 grams, traded near lifetime highs. Silver prices remained high, with rates varying across cities but staying above Rs. 3.5 lakh per kilogram. High prices may slow jewellery buying for now, but investment demand remained firm.

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Gold prices today show how investors react during uncertain times. With global tensions, trade issues, and policy worries still present, gold and silver may continue to stay strong in the near term.