Gold, silver hit record highs as global uncertainty fuels demand

Gold and silver prices in India climbed to unprecedented highs on Friday, mirroring robust global trends.

A softening US dollar and heightened spot demand fueled the rally, drawing investors seeking to capitalize on anticipated further appreciation.

December gold futures on the Multi Commodity Exchange (MCX) jumped over ₹2,000 (1.6%) to establish a historic peak of ₹1,31,920 per 10 grams.

Similarly, December silver futures advanced nearly ₹2,000 (1.2%), setting a fresh benchmark at ₹1,69,676 per kilogram.

Internationally, gold is poised for its strongest weekly gain since 2008. This surge stems from escalating US-China trade friction and mounting speculation about another Federal Reserve interest rate reduction.

The US dollar index declined 0.20%, enhancing gold’s affordability for foreign investors and reinforcing its status as a haven asset.

Domestically, gold consumption remains resilient despite record valuations. Market observers note consumers are accelerating purchases under apprehensions of continued price escalation.

This sentiment contrasts with expectations of demand contraction, instead revealing a “fear of missing out” pattern among buyers.

“Limited new economic indicators and ongoing US fiscal concerns are amplifying safe-haven appetite, propelling gold upward,” market experts commented.

“Prices are expected to sustain their elevated position near-term as traders monitor potential government reopening developments.”

“Immediate support lies between ₹1,26,000–₹1,24,500, with resistance anticipated near ₹1,29,000–₹1,30,000,” they added.

Year-to-date, local gold prices have vaulted over 65%, bolstered by geopolitical strains, aggressive central bank acquisitions, prospects of looser US monetary policy, and vigorous inflows into gold ETFs.

(With inputs from IANS)