Gold and Silver Prices Rise on Trade Uncertainty

Gold and Silver Prices Surge on Trade Uncertainty, Weak Dollar; MCX Gold at Rs 1,61,180​

Gold and silver prices rallied sharply on Wednesday, February 25, as investors turned to safe-haven assets amid escalating global trade uncertainty, geopolitical tensions, and a weakening US dollar.

MCX Gold and Silver Futures Climb Sharply​

On the domestic front, gold and silver futures posted strong gains on the Multi Commodity Exchange.

MCX gold April futures rose 0.76 percent to Rs 1,61,180 per 10 grams around 11:30 am. Silver outperformed, with MCX March futures climbing 3.20 percent to Rs 2,69,075 per kg.

The sharp move in silver reflects heightened volatility in the precious metals segment, even as gold continues to consolidate near record levels.

International Gold Prices Advance Amid US Iran Tensions​

Global bullion markets mirrored the domestic rally. International gold prices, including US futures, moved higher as investors sought safety amid persistent tensions between the United States and Iran.

US President Donald Trump on Tuesday described Iran as the world’s number one sponsor of terrorism and said he wants to resolve issues with Tehran through diplomatic means.

Iran and the United States are scheduled to hold the third round of nuclear talks in Geneva on February 27, keeping geopolitical risks in focus for global markets.

Dollar Index Eases After Supreme Court Tariff Ruling​

The US dollar remained under pressure following ongoing trade uncertainty. The dollar index slipped 0.17 percent to 97.68 after the US Supreme Court struck down high tariffs imposed by President Trump last week.

A softer dollar typically supports bullion prices by making gold and silver cheaper for holders of other currencies.

At present, the United States is imposing a uniform 10 percent tariff on imports. However, a White House official indicated that tariffs could soon be increased to 15 percent, adding to market uncertainty.

Central Bank Buying Supports Precious Metals​

Market participants highlighted sustained central bank demand as an additional supportive factor. The People’s Bank of China purchased gold for the fifteenth consecutive month in January.

Continued central bank accumulation is expected to underpin precious metal prices in the near term.

COMEX Gold and Silver Outlook​

The broader uptrend in COMEX gold remains intact, with the current sideways movement seen as a consolidation phase following earlier volatility and profit booking.

In silver, strong buying interest has been observed in the 70 to 75 dollar support zone on COMEX. The medium to long term outlook remains supported by industrial demand and structural supply constraints.

Key Support and Resistance Levels​

Analysts identified the following technical levels for domestic futures:

• Gold support at Rs 1,58,800 and Rs 1,56,300
• Gold resistance at Rs 1,61,400 and Rs 1,63,000
• Silver support at Rs 2,54,400 and Rs 2,48,800
• Silver resistance at Rs 2,66,000 and Rs 2,71,000

With geopolitical developments, tariff changes, and currency movements in play, gold and silver prices are likely to remain sensitive to global cues in the coming sessions.