Gold prices surged to fresh lifetime highs in early trade on Tuesday, January 20, as investors flocked to safe-haven assets amid escalating global trade tensions and a weaker US dollar. On the Multi Commodity Exchange (MCX), gold February futures rose 1.51% to Rs. 1,47,833 per 10 grams around 10:20 am. Silver March futures gained 2.31% to Rs. 3,17,450 per kg.
The price of 24K gold increased by Rs. 104 by 10:20 am. 10 grams of the precious metal traded at Rs. 1,47,280.
The price of 22K gold also increased by Rs. 95, with ten grams of the yellow metal selling at Rs. 1,35,000.
The price of ten grams of 24K gold stood at Rs. 1,47,280 in Mumbai and Kolkata, and Rs. 1,48,480 in Chennai.
In Delhi, the price of ten grams of 24K gold stood at Rs. 1,47,430.
US gold futures for February delivery climbed nearly 2% to around $4,680 per ounce, while spot gold hovered close to its all-time highs.
The surge has been supported by a sharp drop in the US dollar index, which fell nearly 0.5%, making dollar-denominated bullion more attractive for buyers using other currencies.
Investor sentiment has changed to a more risk-averse attitude after the trade war rhetoric from the US.
The concerns worsened after the US President Donald Trump announced tariffs on imports from a number of European countries, which led to worries about the EU's possible retaliation and a trade conflict between the world's two largest economic areas.
The uncertainty around the trade between the US and the rest of the world has pushed investors towards gold and silver to protect them against volatility, as major economies like Europe, China, and India are already under the US tariffs.
The experts consider that the bull run of gold is backed by the strong macro tailwinds, despite the sharp rise in gold prices.
Geopolitical tensions are heightened, weak currencies, and continuous demand continue to underpin bullion prices. Silver, on the other hand, is benefiting from gold's increase and catches the attention of investors due to uncertain global situations.
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Internationally, gold has support at $4,635 and $4,610, with resistance at $4,700 and $4,740 per ounce. Silver support is placed near $91.40 and $88, while resistance lies at $96.60 and $98.80.
On the MCX, gold finds support at Rs. 1,44,800-Rs. 1,44,100, with resistance at Rs. 1,47,000. Silver support is seen at Rs. 3,03,000-Rs. 2,96,600, while resistance stands at Rs. 3,14,000-Rs. 3,22,000.