Mumbai, Jan 23: Domestic bullion prices surged to unprecedented levels on Friday, with silver and gold both breaching significant psychological barriers at the Indian Futures Exchange (MCX). The rally, driven by a weakening US dollar and heightening global economic anticipation, saw silver’s March contract climb by Rs 12,638. This four percent jump pushed the metal to a fresh peak of Rs 3,39,927 per kilogram.
Gold followed a similar trajectory, marking its fifth consecutive day of gains. For February delivery, the yellow metal rose by Rs 2,885 to settle at Rs 1,59,226 per 10 grams. Market experts noted that investors are increasingly moving toward safe-haven assets as they navigate a landscape of geopolitical tension and financial instability.
“The evolving geopolitical situation is sending mixed signals, creating an environment of uncertainty that is positive for safe-haven gold,” a market analyst mentioned regarding the current trend.
The momentum was mirrored in international markets, where silver surpassed the $99 per ounce mark for the first time. Gold also traded near the $5,000 threshold, recording a global price of $4,970 per ounce. Analysts mentioned that the shift in market sentiment is closely tied to political developments in Europe and administrative changes at the US Federal Reserve.
Furthermore, new export licensing requirements in China have stoked fears of a global supply squeeze. This combination of restricted supply and high demand has resulted in silver’s strongest weekly performance in nearly six years. Experts noted that while the rally is record-breaking, short-term profit booking could potentially lead to brief market corrections in the coming days.
