Gold and silver prices remained firm on Tuesday, extending gains after both metals hit record highs in the previous session, supported by strong safe-haven demand amid geopolitical uncertainty and volatility in global markets.
In the domestic market, silver March futures rose sharply by Rs 21,811, or 6.52 per cent, to Rs 3,56,510 per kg, on Tuesday. The contract opened at Rs 3,39,824 and traded between a low of Rs 3,39,824 and a high of Rs 3,59,800 during the session. Silver also touched its 52-week high.
Gold February futures also traded higher on Tuesday. The contract gained Rs 2,323, or 1.49 per cent, to Rs 1,58,360 per 10 grams. Gold opened at Rs 1,58,674 and moved in a range of Rs 1,57,500 to Rs 1,59,820, touching its 52-week high during the session.
In the previous session, domestic markets had closed on a mixed note. Gold February futures settled at Rs 1,56,037 per 10 grams, down 0.19 per cent, while silver March futures settled at Rs 3,34,699 per kg, up 2.26 per cent.
International prices hover near record levels
In international markets, gold prices rose on Tuesday after breaking through the $5,100 per ounce mark for the first time in the previous session. Spot gold climbed 1 per cent to $5,065.07 per ounce as of 0329 GMT, after touching a record high of $5,110.50 on Monday. US gold futures for February delivery eased 0.4 per cent to $5,059.90 per ounce.
Silver also hovered near all-time highs overseas. Spot silver surged 5.2 per cent to $109.22 per ounce, after hitting a record high of $117.69 in the previous session. The white metal has gained 53 per cent so far this year.
Other precious metals see profit booking
Other precious metals saw some profit booking. Spot platinum declined 2.5 per cent to $2,658.19 per ounce after hitting a record high of $2,918.80 in the previous session. Palladium fell 1.3 per cent to $1,956.31 per ounce.
Gold and silver prices have hit record highs during a highly volatile trading week. Market participants attributed the rally to strong safe-haven buying amid global uncertainty.
Upbeat US consumer confidence data and weakness in the dollar index also supported prices. The dollar index slipped to a 16-week low and fell below the 98 mark amid a rebound in the Japanese yen. Tensions between the United States and other global economies also supported demand for precious metals.
Gold, Silver Price Target
Commenting on the market, Manoj Kumar Jain said, “Gold and silver hit record highs in a highly volatile week. Silver prices crossed $100 per troy ounce for the first time, and gold prices are inching closer to $5,000 per troy ounce amid strong safe-haven buying.”
He said volatility remains elevated in both metals. “We are experiencing very high price volatility in both precious metals, but silver prices could hold their support level of $92 per troy ounce and gold prices could also hold their support level of $4,680 per troy ounce on a closing basis this week,” Jain said.
On the outlook, Jain said prices may remain volatile amid movements in the dollar index, the upcoming Federal Reserve policy meeting and geopolitical tensions. “Gold has support at $4,940–$4,910 while resistance is at $5,000–$5,085 per troy ounce. Silver has support at $98.40–$95.50, while resistance is at $104.00–$106.60 per troy ounce in today’s session,” he said.
In the domestic market, Jain said MCX gold has support at Rs 1,54,400–Rs 1,53,000 and resistance at Rs 1,58,000–Rs 1,60,600. MCX silver has support at Rs 3,28,800–Rs 3,24,000 and resistance at Rs 3,40,000–Rs 3,52,000–Rs 3,60,000.
Jain advised caution in the current market environment. “We suggest investors and traders strictly avoiding any short positions in both precious metals,” he said.