Silver : soars on weaker US inflation statistics, as gold prices aim for a new record high
Silver: On Wednesday, lower US inflation statistics and increased geopolitical concerns increased investor demand for safe havens, causing gold to hover around a new record high while silver reached a new top.
Around 10.05 am, MCX gold February futures increased by 0.53 percent to Rs 1,42,995 per 10 grams, while MCX silver March futures increased by 4.53 percent to Rs 2,87,640 per kilogram.
US core Consumer Price Index (CPI) data for December showed a 2.6 percent year-over-year increase and a 0.2 percent month-over-month climb, both of which were below projections and supported market wagers that the Federal Reserve will lower interest rates in 2026, which would raise the price of gold.
According to analysts, the Fed will probably hold in January but make two or three cuts during the year as a result of the weaker inflation report and conflicting US employment statistics, which will strengthen gold prices.Demand for safe havens was fueled by ongoing geopolitical and economic uncertainty. Rising global tensions and Iranian civil upheaval also bolstered demand in purchasing precious metals. Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., said that the core CPI was below forecasts of 0.3% and was constant year over year, supporting the idea that underlying inflation pressures are abating.Support for gold is between Rs. 1,39,550 and Rs. 1,37,310, while resistance is between Rs. 1,44,350 and Rs. 1,46,670. According to the expert, silver has resistance between Rs 2,79,810 and Rs 2,84,470 and support between Rs 2,69,810 and Rs 2,54,170.
Additional factors driving demand, according to market observers, were growing geopolitical threats brought on by Iranian upheaval and tensions between Venezuela and Greenland.
In light of the dollar index’s volatility and the upcoming US Supreme Court ruling on tariffs, they predicted that the price of gold and silver will continue to fluctuate this week.
After a powerful breakthrough, silver prices are still well above the short- and medium-term averages, indicating aggressive buyer domination. They said that, in the face of tighter supply constraints, the rise is being propelled by a potent combination of industrial demand in solar, EVs, AI, electronics, and safe-haven flows.