NEW DELHI: Gold and silver prices surged significantly on Wednesday, amid rise in global trade uncertainty, geopolitical tensions and decline in US dollar.
MCX gold April futures gained 0.76 per cent to Rs 1,61,180 per 10 grams around 11.30 am on an intraday basis. Meanwhile MCX silver March futures gained 3.20 per cent to Rs 2,69,075 per kg.
International gold prices including US futures also climbed as investors rushed for safe-haven buying amid persisting US-Iran tensions and uncertainty over US tariffs.
US President Donald Trump on Tuesday, called Iran, “the world's no 1 sponsor of terrorism”, adding that he wants to resolve the issue with Iran diplomatically. Iran and the US are expected to hold the third round of nuclear talks in Geneva on February 27.
The dollar continues to fall in the aftermath of persistent trade uncertainty as the US Supreme Court struck down high tariffs imposed by President Trump last week. The dollar index eased by 0.17 per cent to 97.68, making greenback-backed bullion cheaper for buyers in overseas currencies. The US is currently collecting the uniform 10 per cent tariffs on imports, even as White House official said tariffs will be increased to 15 per cent soon, according to multiple reports.
Analysts noted that the People's Bank of China (PBOC), purchased gold for the fifteenth consecutive month in January and continued central bank purchases will support precious metals prices in near term.
The broader uptrend in COMEX gold remains intact, with the current sideways phase reflecting a healthy pause following earlier volatility and profit booking, they said. Strong buying interest is evident in the $70–$75 support zone for COMEX Silver and the medium- to long-term outlook is buoyed by industrial demand and structural supply constraints, market participants said.
"Gold has support at Rs 1,58,800 and Rs 1,56,300 while resistance at Rs 1,61,400 and Rs 1,63,000. MCX silver has support at Rs 2,54,400 and Rs 2,48,800, and resistance is at Rs 2,66,000 and Rs 2,71,000," an analyst said.