Gold prices surged on Monday, January 19, as investors rushed toward safe-haven assets amid rising geopolitical tensions and renewed trade uncertainty triggered by fresh tariff threats from the United States. Weakness in the US dollar and growing expectations of interest rate cuts by the Federal Reserve further increased the prices of precious metals.
On the Multi Commodity Exchange (MCX), gold February futures jumped nearly Rs. 3,000, or over 2%, to a record high of Rs. 1,45,500 per 10 grams. Silver March futures surged by more than Rs. 13,550, or almost 5%, to a fresh all-time high of Rs. 3,01,315 per kg.
The price of 24K gold increased by Rs. 191 by 10:20 am. 10 grams of the precious metal traded at Rs. 1,45,690.
The price of 22K gold also increased by Rs. 175, with ten grams of the yellow metal selling at Rs. 1,33,550.
The price of ten grams of 24K gold stood at Rs. 1,45,690 in Mumbai and Kolkata, and Rs. 1,46,730 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,45,840.
The key factor for the increase in bullion prices is the increased geopolitical risk. The new threat of imposing tariffs of up to 25% on European countries by US President Donald Trump over the Greenland dispute has unsettled global markets.
The news of possible actions against the US by EU countries, such as the use of the EU’s anti-coercion trade mechanism, has added to investor anxiety.
These developments have revived fears of global trade conflict, and the concerns regarding the economic slowdown have increased.
The precious metals price rise was also assisted by the US dollar index's drop, which declined over 0.30% and was near the 99 mark.
A weak dollar causes commodities that are priced in dollars to become less expensive for buyers overseas, thus increasing their demand.
Globally, spot gold gained around 1.6% and was trading just below $4,670 per ounce after reaching an all-time high above $4,680.
US gold futures climbed nearly 1.8%. Spot silver also saw strong buying interest, and after reaching record levels earlier in the session, it jumped over 4% and was trading around $93.85 per ounce.
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On MCX, gold has immediate support at Rs. 1,41,400, followed by Rs. 1,40,000, while silver support is placed at Rs. 2,83,500 and Rs. 2,78,800.
In the international market, gold has support at $4,555 and $4,434, while silver has support at $86.40 and $84.
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