Gold and Silver Prices Skyrocket to New Peaks
Gold and silver prices are trading near record highs in international markets today. This surge comes as fears of a trade war between the United States and Europe intensify. President Donald Trump's recent push to take over Greenland sparked these concerns.
International Market Performance
Spot gold price held steady at $4,671.54 per ounce. Earlier, it reached an all-time high of $4,689.39 in the previous trading session. US gold futures for February delivery climbed sharply. They rose by 1.8% to $4,676.80 per ounce.
Spot silver price experienced a slight dip. It fell 1.2% to $93.53 an ounce. However, earlier in the session, silver hit a record high of $94.72. This shows strong volatility in the precious metals market.
Driving Factors Behind the Rally
Several key factors are fueling this impressive rally in gold and silver prices:
- Safe-Haven Demand: Investors are flocking to gold and silver as safe-haven assets. They seek protection from geopolitical uncertainties.
- Weak US Dollar: The US dollar is showing weakness. This makes dollar-denominated commodities like gold more attractive to international buyers.
- Trade War Tensions: Trump's intensified efforts to wrest sovereignty over Greenland from Denmark alarmed markets. Denmark is a fellow NATO member. The European Union is now considering retaliatory measures, raising trade war fears.
Domestic Market Surge in India
In Indian domestic markets, the rally was even more pronounced. MCX gold rate jumped significantly on Monday. It rose by ₹3,240, which translates to a 2.27% increase. The price reached ₹1,45,757 per 10 grams. During the session, MCX gold price hit a record high of ₹1,45,770.
MCX silver rate witnessed a staggering surge. It climbed by ₹22,389, marking a 7.78% rise. The price settled at ₹3,10,151 per kg. Silver price touched a life-time high of ₹3,10,944 during trading. This highlights robust demand in the Indian market.
Market Outlook and Investor Sentiment
Analysts point to continued uncertainty driving prices. The escalating trade tensions between the US and Europe could sustain this rally. Investors are closely monitoring political developments. Any further escalation may push gold and silver prices even higher.
Market participants advise caution. They note that such rapid gains might lead to profit-booking in the near term. However, the underlying safe-haven appeal remains strong. This supports a bullish outlook for precious metals.
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