Gold, silver hit record highs amid US‑Venezuela tensions, easing dollar

Gold and silver prices climbed more than 1% to unprecedented levels on Tuesday as investors sought safety amid growing geopolitical strains, particularly between the US and Venezuela.

February gold futures on MCX jumped 1.2% to reach a historic peak of ₹1,38,381 per 10 grams, trading 1.01% higher by 10:48 AM. Silver followed suit, rising 1.7% to an all-time high of ₹2,16,596 per kilogram and maintaining a 1.30% gain at the same time. A 0.20% dip in the dollar index during the session enhanced gold’s appeal in foreign currencies.

Market analysts attributed the rally to escalating global tensions, including recent confrontations between US and Venezuelan forces. Reports confirm the US Coast Guard seized a sanctioned Venezuelan oil tanker this month and attempted to intercept two additional vessels over the weekend.

“Safety-driven investments dominated early trading during this shortened holiday week amid heightened geopolitical risks,” noted Rahul Kalantri, VP of Commodities at Mehta Equities Ltd. He highlighted that Venezuela-related tensions and Monday’s fatal bombing targeting a Russian military official amplified market uncertainties, benefiting precious metals.

Kalantri added that cooling US inflation figures and predictable outcomes from the Bank of Japan’s recent policy meeting further supported gold and silver’s upward trajectory.

Technical analysis indicates gold finds support between ₹1,35,550-1,34,710, with resistance at ₹1,37,650-1,38,470. Similarly, silver’s support sits at ₹2,11,150-2,10,280 while facing resistance at ₹2,13,810-2,14,970 levels.

Multiple factors have driven this year’s precious metal surge, including aggressive central bank acquisitions, anticipated US Federal Reserve rate reductions, concerns over US tariff impacts, persistent geopolitical friction, and substantial inflows into gold and silver ETFs.

Domestic spot gold prices have soared 76% year-to-date, with international prices nearing a 70% gain in 2025—potentially marking their strongest annual performance since 1979. Both domestic and global silver markets have witnessed approximately 140% growth since January.

(With inputs from IANS)