Gold blasts past ₹1.58 lakh, silver soars to new peak as trade war fears grip markets
New Delhi (The Uttam Hindu): Gold prices surged more than 4 percent on Wednesday, reaching another record high. Silver also surpassed its previous record, reaching a new all-time high. Investors are turning to safe havens like gold and silver amid fears of an escalating trade conflict between the US and Europe and a weakening dollar.
In Wednesday's trading session, Gold February futures on MCX reached a record level of Rs 1,58,339 per 10 grams, while Silver March futures reached Rs 3,35,000 per kg.
At the time of writing this news (around 11.50 am), gold for February delivery on MCX was trading at Rs 7,363 or 4.89 per cent higher.
Silver for March delivery rose by Rs 10,499, or 3.24 per cent, to Rs 3,34,171 per kg.
Gold also set new records in international markets. US gold reached $4,849 per troy ounce on Comex. Meanwhile, silver prices remained in the range of $92.5 to $95.7.
This price increase follows news that the US is preparing to impose 10 percent tariffs on eight European countries starting in February, with the potential to increase these tariffs to 25 percent by June. In response, European countries are also considering taking trade measures against the US.
Experts say the silver future looks strong in the medium and long term. Supply shortages and rising industrial demand could push silver prices to $110-$120 by 2026.
Currently, the MCX silver futures are considered to be in the range of ₹330,000 to ₹332,000. This price could even reach ₹335,000 to ₹350,000 per kg in the coming months.
Manoj Kumar Jain, an expert at PrithviFinmart Commodity Research, said that the escalating trade war between the US and Europe and the decline in global stock markets have increased investor anxiety. In this environment, people are abandoning risky investments and investing in safe-haven options like gold and silver.
He said that rising US bond yields, selling in the Japanese bond market and weakness in the rupee have also supported the prices of gold and silver.
According to experts, strong demand in solar energy, electric vehicles (EVs), artificial intelligence (AI) and electronics sectors is also keeping gold and silver prices high.
Apart from this, buying by central banks, geopolitical tensions, inflation protection and expectations of easy monetary policy are also strengthening gold and silver.