Gold and Silver hit fresh record highs amid global tensions and tariff fights
Mumbai (The Uttam Hindu): Amid rising global tensions, gold and silver hit new highs on Tuesday. Prices of the precious metals on the MCX surpassed the previous day's record and reached new highs. Gold February futures reached a record high of ₹147,996 per 10 grams, while silver March futures reached ₹319,949 per kilogram.
In Monday's trading session, while gold for February delivery on MCX reached a record high of Rs 1,45,500 per 10 grams, silver for March delivery reached a record high of Rs 3,01,315 per kg. In the international market, silver prices on Comex reached $94.320 per ounce. Gold reached $4,708.10 per ounce. In the previous session, gold had touched a record high of $4,689.39 per ounce.
US President Donald Trump's statements related to Greenland and threats of tariffs have increased global tensions, due to which investors turned towards safe investment i.e. safe-haven options. Till the time of writing the news, gold for February delivery on MCX was at Rs 1,47,894 per 10 grams with a rise of 1.55 percent i.e. Rs 2,255, while silver for March delivery was at Rs 3,17,554 per kg with a jump of Rs 7,279 i.e. 2.35 percent.
This surge came as President Trump announced new tariffs on eight European countries protesting the Greenland issue.
The surge in precious metals came after US President Donald Trump threatened to impose new tariffs on eight European countries protesting the Greenland issue.
President Trump said on Monday that the use of force to acquire Greenland was not ruled out. He also reiterated his threat to impose tariffs on goods coming to the US from European countries.
French President Emmanuel Macron said he would call for the EU's anti-coercion mechanism to be invoked. Meanwhile, German Chancellor Friedrich Merz appealed for restraint. Furthermore, Denmark's decision to increase its military presence in Greenland has further increased geopolitical uncertainty.
Markets are also monitoring whether the Trump administration will take any action against the US central bank, the Federal Reserve. This has raised concerns about the central bank's independence, which is also benefiting precious metals. Additionally, expectations of further interest rate cuts in the US are also supporting gold and silver prices. These metals also received significant support from expectations of interest rate cuts in 2025.
According to experts, this rise in precious metals reflects both safe-haven and industrial demand for silver. Silver use is growing in sectors such as solar energy, electric vehicles, and electronics. Analysts said that technically, silver remains strong on Comex. Prices could remain supported in the $85 to $88 per ounce range in the near future.
A recent Augmont report suggests that prices could fall slightly due to profit-booking, and silver could reach $84 per ounce, or ₹260,000 per kg, before rebounding. Analysts caution that investors may book profits after the sharp rise, but believe that gold and silver will remain bullish in the long term due to supply concerns and rising industrial demand.