Gold-Silver Prices Soar 5% Amidst Geopolitical Tensions

Gold and silver prices have surged amidst escalating geopolitical tensions. The weakening dollar index and safe-haven demand have driven both metals to new highs. Analysts anticipate continued upward momentum in the coming months.

Gold-Silver Prices Soar 5% Amidst Geopolitical Tensions

Gold October futures at MCX opened steady today at Rs 74,268 per 10 grams, remaining close to its record high, while silver December futures traded at Rs 90,213 per kilogram, up by 0.09% or Rs 78.

Over the past week, gold prices have increased by Rs 800 per 10 grams, and silver prices have risen by Rs 600 per kilogram. On Friday, both gold and silver finished positively in both international and domestic markets, with the gold October futures contract closing at Rs 74,040 per 10 grams, a rise of 0.82%, and the silver December futures contract ending at Rs 90,135 per kilogram, up by 0.19%.

Both metals experienced significant volatility and strong gains last week, driven by substantial Fed rate cuts and a weakening dollar index. The U.S. Federal Reserve reduced interest rates by 50 basis points, while the Bank of England and the Bank of Japan maintained their rates, which bolstered bullion prices.

Gold and silver prices have risen due to a weakening dollar index following Fed rate cuts and ongoing geopolitical tensions. The escalating situation in the Middle East has also driven safe-haven demand for these precious metals. Gold has reached all-time highs, while silver is at its highest in two months. Both metals are in a long-term bullish trend and are expected to continue gaining in the coming months.

Today, the U.S. Dollar Index (DXY) was around 100.77, showing a slight increase of 0.05 or 0.05%.

Manoj Kumar Jain from Prithvifinmart Commodity Research noted, “Any price dips present a good buying opportunity for gold and silver. We anticipate that prices will remain volatile this week due to fluctuations in the dollar index and geopolitical concerns, but we expect them to hold support levels of $2,564 and $29.80 per troy ounce, respectively, on a weekly closing basis.”

According to Manoj Kumar Jain, the ranges for gold and silver at MCX are as follows:

For gold, support is located between 73,800 and 73,550, while resistance is between 74,280 and 74,600.

For silver, support ranges from 89,550 to 88,800, and resistance is between 90,650 and 91,200.