In a sharp market reversal, gold and silver prices exploded higher on Monday, propelled by a battered US dollar and unrelenting geopolitical strife. MCX data revealed February gold futures climbing 1.31% to 1,57,484 rupees for 10 grams, as March silver contracts surged 4.81% to 2,61,900 rupees per kilogram.
Silver stole the spotlight early, touching an intraday high of 2,64,885 rupees—up almost 6%—before sellers stepped in with profit booking. The dollar’s slump to multi-week lows since early February enhanced the appeal of precious metals for global traders.
Even as Iran’s foreign minister described recent US nuclear discussions as a ‘good start,’ the nation’s insistence on uranium enrichment rights keeps markets on edge. Experts predict prolonged uncertainty, channeling capital into traditional havens like gold and silver.
Fed rate cut bets intensified after Mary Daly’s remarks advocating further easing to fix labor softness. Lower rates diminish the opportunity cost of holding non-yielding assets, supercharging bullion demand.
From a technical standpoint, gold could test supports at 1,54,000 and 1,51,800 rupees, while battling resistance around 1,57,700-1,60,000. Silver’s key floors lie at 2,36,600 and 2,44,000, with ceilings at 2,55,500 and 2,62,600.
Silver’s rally from 60,000 to over 3,20,000 rupees reflects deep supply constraints and insatiable industrial needs. Ongoing safe-haven buying, central bank accumulation, and dovish policy outlooks worldwide point to sustained strength in gold and silver markets.