Gold and silver: Due to tensions between the US and Venezuela reached all-time highs, while the dollar
Gold and silver: Due in large part to rising US-Venezuela tensions, safe-haven demand drove the prices of gold and silver to reach new record highs on Tuesday, rising by more than 1%.
As of 10.48 am, MCX gold futures were up 1.01 percent, having risen 1.2% to an all-time high of Rs 1,38,381 per 10 kilos.
As of 10.48 am, MCX silver was up 1.30 percent after rising 1.7% to a new high of Rs 2,16,596 a kilogram. Gold became less expensive in foreign currencies as the dollar index fell by 0.20 percent throughout the session.
According to experts, the surge has been supported by increased geopolitical uncertainty, particularly rising US-Venezuela tensions.
According to many sources, tensions escalated last month when the US Coast Guard captured a super tanker transporting Venezuelan oil under sanctions and attempted to stop two additional ships connected to Venezuela over the weekend.
Rahul Kalantri, vice president of commodities at Mehta Equities Ltd., said that “safe haven bidding is featured to begin a holiday-shortened trading week, amid heightened geopolitical tensions.”
According to Kalantri, the death of a Russian army commander in a bombing on Monday and the escalation of US-Venezuela tensions raised geopolitical risk and bolstered gold and silver.
He said that both precious metals increased after a slowdown in US inflation and the lack of a more significant surprise from the Bank of Japan’s policy sessions last week.
The Rs 1,35,550–1,34,710 range represents support for gold, while the Rs 1,37,650–1,38,470 range is resistance.
According to the expert, silver has resistance around Rs 2,13,810, and 2,14,970 levels and support at Rs 2,11,150-2,10,280.
This year’s gold and silver prices were driven by aggressive central bank purchasing, predictions of US Fed rate reduction, geopolitical tensions, worries about the effects of US tariffs, and strong inflows into gold and silver ETFs.
Domestic spot gold prices have risen 76% so far this year, while international gold prices are expected to rise about 70% in 2025, marking their best year performance since 1979.
The price of silver has increased by almost 140% year-to-date on both the local and foreign markets.