Argus News - Gold, Silver Prices Surges Sharply as US Dollar Weakens

Mumbai, Feb 9: Gold and silver prices jumped sharply on Monday, buoyed by ongoing geopolitical tensions and a softer US dollar.

Around 10.45 am, MCX gold February surged 1.31% to ₹1,57,484 per 10 grams on an intraday basis. MCX silver March, on the other hand, jumped 4.81% to ₹2,61,900 per kg.

Silver prices, on the MCX, had climbed 6% earlier in the day to its day’s high of ₹2,64,885 per kg before a round of profit booking.

The US dollar touched its lowest level since February 4, making greenback-priced metals cheaper for overseas buyers.

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Iran would retain its right to enrich uranium, reiterated Tehran despite the country’s top diplomat Friday called US-Iran nuclear talks a “good start”.

Market hopes of further rate cuts by the US Federal Reserve got stronger after San Francisco Fed President Mary Daly called for one or two more interest rate cuts to alleviate weakness in the labour market. US Fed rate cut hopes remain another supporting factor for gold and silver prices, analysts said.

“Gold has support at ₹1,54,000 and ₹1,51,8000 zones while resistance at ₹1,57,700 and ₹1,60,000. Silver has support at ₹2,36,600 and ₹2,44,000 levels while resistance at ₹2,55,500 and ₹2,62,600,” an analyst said.

Silver’s sharp surge from ₹60,000 to ₹3,20,000 could lead to a phase of consolidation at elevated levels or rebalancing by market participants becomes more likely, according to a recent report.

Structural supply deficits and steady industrial demand continue to underpin the bullish bias in silver. Persistent safe-haven demand, steady central-bank accumulation, and expectations of accommodative global monetary conditions continue to underpin prices of yellow metal, it said.

(IANS)