Gold prices eye fresh record high, silver skyrockets after softer US inflation data
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Gold traded near record highs on Wednesday, while silver prices surged to a fresh peak amid weaker US inflation data and escalating geopolitical tensions, boosting investor appetite for safe-haven assets.
MCX gold February futures rose 0.53% to Rs 1,42,995 per 10 grams by late morning, while MCX silver March futures rallied 4.53% to Rs 2,87,640 per kilogram.
Recent US core CPI data for December showed a 0.2% monthly increase and a 2.6% annual rise, falling below forecasts. This reinforced market expectations of Federal Reserve rate cuts by mid-2024, pushing gold prices upward.
Analysts noted the cooling inflation figures, combined with mixed US employment data, suggest the Fed will likely maintain rates in January but implement two to three reductions later this year, providing continued support for gold.
“Subdued inflation readings alongside geopolitical and economic uncertainties are amplifying safe-haven demand,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. “Civil unrest in Iran and rising global tensions further underpin precious metal buying. December’s core CPI staying below projections confirms easing underlying inflation pressures.”
Technically, gold finds support at Rs 1,39,550-Rs 1,37,310 levels with resistance at Rs 1,44,350-Rs 1,46,670. Silver sees support in the Rs 2,69,810-Rs 2,54,170 range, facing resistance between Rs 2,79,810 and Rs 2,84,470.
Market analysts highlighted additional price drivers, including geopolitical risks from Iran’s internal conflicts and territorial disputes involving Venezuela and Greenland.
Prices are expected to stay volatile this week due to dollar index fluctuations and anticipation around an upcoming US Supreme Court tariff decision.
Silver’s decisive breakout above key moving averages reflects strong buyer momentum, fueled by surging industrial demand from solar, EV, AI, and electronics sectors alongside safe-haven inflows, all amid tightening global supplies.
(With inputs from IANS)
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