Gold, silver prices rise over 1% to scale another new peak. What’s driving the surge and will it sustain?

Gold and silver prices continued their record-setting run on Tuesday, extending gains at the open as strong global cues and sustained safe-haven demand kept investor sentiment firmly positive. On the Multi Commodity Exchange (MCX), gold February futures hit a new all-time high of Rs 1,38,300/10 grams, surging by over Rs 1,400.Meanwhile, silver March futures also started strong, shooting up by over Rs 4,000 to hit a new peak of Rs 2,16,596/kg, mirroring the broader rally in global bullion markets.Internationally, gold prices touched a fresh all-time high above $4,480 per ounce, marking the 50th record-breaking session this year. The rally has been supported by growing expectations of a more accommodative monetary stance from the US Federal Reserve, along with increased geopolitical uncertainty.“So far this year, bullion has soared 70%, on track for its strongest annual gain since 1979,” said Jigar Trivedi, Senior Research Analyst – Currencies & Commodities, Reliance Securities.On the MCX, gold and silver prices extended their gains on Monday. Gold February futures settled at Rs 1,36,744 per 10 grams, posting a 1.90% gain, while silver March futures ended the day at Rs 2,12,872 per kg, up 2.13%. This strong performance follows a broader surge in global bullion markets.Adding to the bullish tone, Manoj Kumar Jain of Prithvifinmart Commodity Research noted that heightened US-Venezuela tensions and the killing of a Russian army general have intensified geopolitical risks, pushing investors toward safe-haven assets like gold and silver. Easing US inflation and no major surprises from the Bank of Japan’s recent policy meeting also lent support to prices.As of today, the US Dollar Index (DXY) hovered near 98.09, gaining 0.18 points, or 0.18%, but has so far not deterred bullish sentiment in metals. Analysts note that investor appetite is shifting away from risk assets, favouring gold and silver amid persistent global uncertainties.Gold prices are inching closer to $4,500 per troy ounce and heading towards $4,890 per troy ounce levels, while silver prices are heading towards $78 per troy ounce levels in the international markets.How to trade gold?From a trading perspective, Jain sees gold finding support at Rs 1,36,000–Rs 1,35,400 and resistance at Rs 1,37,400–Rs 1,38,000. He suggests buying around Rs 1,36,000–Rs 1,37,000 with a stop loss at Rs 1,35,100 and targets of Rs 1,38,000–Rs 1,39,100.For silver, support lies at Rs 2,11,000–Rs 2,09,500 and resistance at Rs 2,14,400–Rs 2,17,000. Jain recommends a buy around Rs 2,12,000–Rs 2,10,000 with a stop loss of Rs 2,07,700 and targets of Rs 2,15,000–Rs 2,17,000.Trivedi added that MCX Gold February futures may continue to appreciate up to Rs 1,37,500, given the strong bullish undertone in global markets.Gold rates in physical marketsGold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,03,112/8 grams while pure gold (24 carat) prices stand at Rs 1,11,096/8 grams.Gold Price today in MumbaiStandard gold (22 carat) prices in Mumbai stand at Rs 1,02,288/8 grams while pure gold (24 carat) prices stand at Rs 1,10,216/8 grams.Gold Price today in ChennaiStandard gold (22 carat) prices in Chennai stand at Rs 1,02,072/8 grams while pure gold (24 carat) prices stand at Rs 1,09,864/8 grams.Gold Price today in HyderabadStandard gold (22 carat) prices in Hyderabad stand at Rs 1,02,000/8 grams while pure gold (24 carat) prices stand at Rs 1,09,880/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)