Hyderabad: Gold silver prices surged to fresh record highs on Thursday as investors rushed to safe-haven assets amid rising geopolitical tensions involving the United States and Iran.
Strong buying demand from central banks and further weakness in the US dollar also supported the rally. Investors increased exposure to safe-haven assets as global uncertainty intensified.
On the domestic market, MCX gold February futures rose 5.99 per cent to Rs 1,75,885 per 10 grams around 10.45 am. Meanwhile, MCX silver March futures climbed 4.24 per cent to Rs 4,01,699 per kg.
Internationally, silver hovered near the $120-per-ounce level after gaining more than 60 per cent this year. Analysts attributed the surge to persistent supply constraints in global markets.
Gold silver prices rally on Fed stance and geopolitical risks
The rally in gold silver prices followed the US Federal Reserve’s decision to keep interest rates unchanged on Wednesday. The policy stance reinforced expectations of prolonged monetary support.
Reports of increased US military presence in the Middle East further lifted sentiment. Trump also urged Iran to reopen negotiations on its nuclear programme and warned of harsher action if talks failed.
US gold futures for April delivery jumped $300 to cross $5,588.71 an ounce. Prices earlier touched a fresh all-time high of $5,626.
Analysts said the earlier resistance zone around $5,600 had now turned into strong support. They said the move confirmed the strength of the ongoing bull phase.
Renewed US tariff tensions with key allies and rising fears of a US government shutdown also boosted demand for precious metals. Analysts said slowing global growth, high US debt, and structural dollar weakness kept the medium- to long-term outlook positive.
They added that expectations of lower interest rates for an extended period meant any price dips were likely to attract strong buying interest.