Mumbai, 26 December (IANS). Gold and silver prices reached their new record high on Friday, the last trading day of the week, due to rising geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve next year.
On MCX, gold futures for February delivery rose by more than 0.72 percent to reach a record level of Rs 1,39,286 per 10 grams, while MCX Silver March futures rose by more than 4 percent to reach a record level of Rs 2,33,183 per kg. This is the highest level ever for both precious metals.
At the time of writing, gold was trading at Rs 1,39,220 per 10 grams with a rise of Rs 1,123 or 0.81 percent, while silver was trading at Rs 2,33,000 per kilogram with a rise of Rs 9,210 or 4.12 percent.
This surge in gold prices has mainly come due to increasing tensions between America and Venezuela. Gold prices have also increased in international markets and spot gold rose 0.5 percent to $ 4,501.44 an ounce. Earlier, gold had reached $ 4,530.60 an ounce.
Traders are expecting the US Federal Reserve to cut interest rates twice to 0.25 percent in 2026, as inflation eases and labor market conditions soften. Along with this, demand for safe investments has also increased due to increasing geopolitical tensions.
Geopolitical tensions have been heightened by rising tensions between the US and Venezuela, the Russia-Ukraine war, and US military action against ISIS in Nigeria. This month the U.S. Coast Guard seized a supertanker loaded with Venezuelan crude and tried to intercept two other vessels belonging to Venezuela, further escalating tensions.
Rahul Kalantri, vice-president, commodities, Mehta Equity Ltd, said buying by central banks and continued capital inflows into ETFs are supporting gold prices. Gold has support between Rs 1,36,550 to Rs 1,35,710, while resistance lies between Rs 1,38,850 to Rs 1,39,670. Whereas in silver, support is between Rs 2,22,150 to Rs 2,20,780 and resistance is between Rs 2,25,810 to Rs 2,26,970.
According to experts, aggressive buying by central banks, expectations of interest rate cut by the US Fed, concerns over the effects of US tariffs, geopolitical tensions and strong investment in gold and silver ETFs have boosted gold and silver prices this year.
–IANS
DBP/VC
