Mumbai, February 23: Gold and silver prices witnessed a sharp surge on Monday in domestic futures trade, tracking heightened geopolitical tensions and a pronounced weakness in the US dollar.
MCX Gold and Silver Futures Record Strong Gains
On the Multi Commodity Exchange, MCX gold April futures climbed 1.83 percent on an intra day basis to ₹1,59,749 per 10 grams. MCX silver March futures advanced 5.10 percent to ₹2,65,836 per kg.Earlier in the session, gold had rallied 2 percent, while silver surged as much as 6 percent, reflecting aggressive buying interest in precious metals.
Geopolitical Risks Fuel Safe Haven Demand
The sharp upswing in bullion prices comes as geopolitical tensions intensify ahead of a 10 day deadline set by US President Donald Trump for a meaningful deal with Iran.Iran has indicated its willingness to make concessions on its nuclear programme in negotiations with the United States in exchange for the lifting of sanctions and recognition of its right to enrich uranium. The diplomatic developments are being closely watched as Tehran seeks to avert the possibility of a US attack.
Rising geopolitical uncertainty has bolstered gold’s appeal as a safe haven asset, while silver has also attracted strong demand.
US Supreme Court Ruling Weakens Dollar
Further support for bullion prices emerged after the US Supreme Court struck down a broad range of President Trump’s tariffs on Friday. The ruling triggered a decline in the US dollar, enhancing the attractiveness of dollar denominated commodities such as gold and silver.Market participants noted that the court’s decision has weakened the ability to impose tariffs swiftly, although uncertainty surrounding global trade dynamics continues to linger.
Silver Sees Inventory Drawdown, Supply Tightness
Silver’s sharp rally was also linked to significant inventory drawdowns from warehouses, particularly Comex, signalling tight supply conditions and rising demand. The surge comes as China remains shut, adding to supply side dynamics in the global silver market.Slowing US Growth Adds to Bullion Support
Concerns over moderating US economic growth have further strengthened gold’s safe haven appeal. The US GDP expanded at an annual rate of 1.4 percent in the fourth quarter, down from 4.4 percent in the July to September quarter and 3.8 percent in the April to June quarter.The softer growth trajectory has reinforced expectations of continued volatility in global markets, underpinning demand for precious metals.
Key Support and Resistance Levels
Analysts indicated that gold has support at ₹1,54,400 and ₹1,53,150, while resistance levels are seen at ₹1,59,100 and ₹1,60,600.For MCX silver, support is placed at ₹2,48,800 and ₹2,42,000, with resistance levels at ₹2,57,700 and ₹2,63,620.
Market Awaits Fresh US Economic Data
Traders are closely monitoring upcoming US factory orders, consumer confidence readings, and US Producer Price Index data for further direction in bullion prices.With geopolitical tensions, currency movements, and macroeconomic signals converging, gold and silver remain at the center of investor attention in the commodities market.
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