Mumbai, Jan 27: Gold and silver prices climbed to fresh record highs on Tuesday, driven by continued weakness in the US dollar and expectations of interest rate cuts by the US Federal Reserve.
On the MCX, gold February futures rose 1.48 per cent to Rs 1,58,343 per 10 grams, while silver March futures surged 6.56 per cent to Rs 3,56,670 per kg. Earlier in the session, gold touched an all-time high of Rs 1,59,820 per 10 grams, gaining 2.4 per cent, before easing slightly due to profit booking.
Internationally, both precious metals also hit record levels as geopolitical concerns pushed investors towards safe-haven assets. Fears of a possible US government shutdown and fresh trade tensions following President Donald Trump’s threats of imposing new tariffs on South Korean automobiles, lumber, and pharmaceutical imports added to market uncertainty. Trump also warned Canada of a 100 per cent tariff if it enters into a trade deal with China.
US gold futures for April rose about 1 per cent to $5,113.70 per troy ounce, as the dollar index slipped 0.1 per cent, making bullion cheaper for holders of other currencies.
Analysts said strong safe-haven demand, sustained central-bank buying, and expectations of supportive global monetary policies continue to underpin prices. COMEX silver crossed the $99 mark, registering fresh lifetime highs.
Meanwhile, the two-day Federal Open Market Committee (FOMC) meeting in the US this week is expected to keep interest rates unchanged, though traders are pricing in at least two rate cuts later in the year.
Market focus has shifted to the upcoming Federal Reserve decision amid speculation of political pressure on the central bank, said Rahul Kalantri, Vice President – Commodities at Mehta Equities Ltd. He added that these factors have strengthened inflows into silver and other precious metals.
Kalantri said gold has support in the Rs 1,57,050–1,55,310 range, with resistance at Rs 1,59,850 and Rs 1,62,950. Silver has support at Rs 3,38,810 and Rs 3,22,170, while resistance is seen at Rs 3,55,810 and Rs 3,62,470.
Another analyst said gold could test Rs 1,65,000 per 10 grams and silver Rs 3,65,000 per kg in the coming sessions. However, silver’s sharp rally may lead to a period of consolidation or rebalancing at higher levels, according to a recent report. (Agencies)
