Gold and silver prices : witnessed a sharp rally on Friday, reaching record highs across domestic and international markets. The surge was driven by a combination of a weakening US dollar, rising geopolitical uncertainty in the Middle East, and continued strong investor demand for safe-haven assets. Precious metals benefited as market participants shifted capital away from risk-sensitive assets and government bonds, seeking protection against global instability and potential economic disruptions.
In the Indian commodity market, gold and silver futures traded firmly higher on the Multi Commodity Exchange. Gold February futures jumped over one percent to trade near Rs 1,58,261 per 10 grams during late morning trade. Silver March futures outperformed gold, rising more than two and a half percent to reach around Rs 3,35,900 per kilogram. The strong upward momentum reflected heightened buying interest from traders and investors amid global cues.
The domestic rally was also supported by currency movements, as a softer dollar tends to make precious metals more attractive for non-dollar economies. In addition, sustained demand from jewellers and investors added strength to the ongoing uptrend in bullion prices.
Globally, gold prices remained close to historic highs, trading near the $4,951 level after touching a fresh record high of around $4,967. Analysts noted that a previously strong resistance band between $4,900 and $4,940 has now turned into a solid support zone. This technical shift reinforced bullish sentiment in the market.
The broader outlook for gold continues to remain positive due to consistent central bank buying and expectations of accommodative global liquidity conditions. Many central banks have been increasing their gold reserves as a long-term strategy to diversify away from traditional reserve currencies and hedge against financial market volatility.
Silver prices on international exchanges also surged to fresh all-time highs, briefly nearing the $98.92 mark. After the sharp rally, prices saw mild profit booking and consolidated in the $98.30 to $98.70 range. Despite the short-term consolidation, overall sentiment for silver remains optimistic due to strong industrial demand and investor interest.
However, analysts caution that silver’s exceptional rise over the past year may lead to periods of consolidation. The metal has significantly outperformed gold, creating the possibility of portfolio rebalancing by market participants in the near term.
Rising geopolitical tensions played a major role in boosting precious metal prices. Recent statements from the United States regarding potential military actions in the Middle East increased uncertainty in global financial markets. Reports of increased naval presence and warnings related to nuclear developments added to investor anxiety.
Such geopolitical risks typically support demand for gold and silver, as they are widely considered safe-haven assets during times of political and economic stress. Investors often turn to precious metals to preserve value when global tensions escalate.
Market experts highlighted important technical levels for traders to watch. Gold is expected to find support in the Rs 1,54,650 to Rs 1,52,310 range, while resistance is seen between Rs 1,58,850 and Rs 1,60,150. For silver, support levels are placed between Rs 3,20,810 and Rs 3,10,170, with resistance seen in the Rs 3,31,810 to Rs 3,37,470 zone.
A recent market report suggested that silver’s rally of more than 200 percent over the past twelve months, compared to gold’s approximately 80 percent rise, may create favorable conditions for gold in the near term. As silver prices remain elevated, investors could shift focus back toward gold, leading to relative strength in the yellow metal.
Silver’s sharp climb from around Rs 60,000 to over Rs 3,20,000 per kilogram indicates the possibility of consolidation at higher levels. Market participants may adopt a cautious approach, balancing profits while monitoring global economic signals.
Overall, the outlook for precious metals remains constructive, supported by global uncertainty, currency fluctuations, and sustained investment demand.
