Gold and Silver Prices Soar to New Record Highs Amid Trade Tensions
Gold and silver prices surged to fresh record highs on Tuesday. This rally extended gains from the previous session. Renewed fears of a potential US-EU trade war drove investors towards safe-haven assets.
Trade War Threats Trigger Market Rally
The rally followed tariff threats by US President Donald Trump. These threats were linked to opposition from European countries over his Greenland move. This development has heightened global uncertainty significantly.
On the Multi Commodity Exchange (MCX), gold futures for February 5, 2026, delivery rose sharply. They increased by Rs 1,300 or 1 per cent to reach Rs 1,46,988 per 10 grams. Silver futures for March 5, 2026, surged even more dramatically. They jumped Rs 7,869 or 2.5 per cent to Rs 3,19,949 per kg.
International Markets Follow Suit
In the international market, COMEX silver prices jumped to a fresh lifetime high. They reached $94.74 per troy ounce during Asian trade. Gold hovered near record levels at around $4,670 per troy ounce.
Prices later pared some gains after a sharp rally in the previous session. That rally had been triggered by Trump's announcement of proposed tariffs. These tariffs targeted eight European countries opposing his Greenland move.
Fragile Market Sentiment Prevails
Market sentiment has remained fragile amid fears of another trade standoff. This standoff is between the US and Europe. According to news agency AFP, silver touched $94.73 in Asian trade. Gold held just shy of its own record peak as risk aversion intensified across global markets.
Expert Analysis on Precious Metals Outlook
On the outlook, Manoj Kumar Jain of Prithvi Finmart shared his perspective. He said precious metals are witnessing elevated volatility but are expected to remain supported.
"Silver is expected to hold its key support near $84 per troy ounce," Jain stated. "Gold is likely to sustain support around $4,440 per troy ounce on a closing basis."
He added specific technical levels for both metals. Gold has international support in the $4,635–$4,610 range. Resistance sits at $4,700–$4,740. Silver is supported between $91.40 and $88. Resistance for silver is at $96.60–$98.80.
MCX Support and Resistance Levels
On MCX, gold support is seen at Rs 1,44,800–Rs 1,44,100. Resistance appears at Rs 1,46,350–Rs 1,47,000. Silver support lies at Rs 3,03,000–Rs 2,96,600. Resistance for silver is at Rs 3,14,000–Rs 3,22,000.
Trading Strategy Recommendations
Jain outlined a clear trading strategy. He said the approach remains to buy gold and silver on dips. Targets are set at Rs 1,48,000 for gold and Rs 3,22,000 for silver.
Stop losses should be placed below Rs 1,44,000 for gold. For silver, stop losses should be below Rs 2,98,000. This strategy aims to capitalize on potential pullbacks while managing risk effectively.
The ongoing trade tensions continue to influence market dynamics. Investors are closely watching developments between the US and Europe. Any escalation could drive further gains in precious metals as safe-haven demand persists.
