Mumbai: Precious metals continued their historic rally on Thursday, with silver breaking past the Rs 4 lakh per kilogram mark for the first time ever, while gold moved closer to the Rs 2 lakh per 10 grams level in domestic markets. The surge comes amid rising global geopolitical tensions and strong demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), gold prices climbed sharply during the day. February gold futures touched a high of nearly Rs 1.81 lakh per 10 grams before easing to around Rs 1.75 lakh in late trade. As the February contract approaches expiry, April gold futures saw higher activity and hit an intraday peak of about Rs 1.93 lakh per 10 grams.
Silver prices showed even stronger momentum. March silver contracts on MCX surged to around Rs 4.2 lakh per kilogram, marking the highest level recorded during the session.
In the global market, silver prices briefly crossed the $120 per ounce mark, while gold rose above $5,600 per ounce, both hitting record highs for the first time. However, profit booking at elevated levels led to a pullback, with silver falling nearly 6 percent and gold slipping around 4 percent from their peak levels.
Market experts attribute the rally to growing investor preference for physical assets. Rahul Kalantri, Vice President of Commodities at Mehta Equities, said gold continued its record-breaking run as concerns over global economic stability and geopolitical risks pushed investors toward safe-haven investments. Silver also benefited from similar demand trends.
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He added that the rally persisted despite the US Federal Reserve keeping interest rates unchanged, which strengthened expectations of extended monetary support. Investors are increasingly moving away from paper currencies and turning to tangible assets like gold and silver. Geopolitical tensions also intensified after US President Donald Trump called on Iran to negotiate a nuclear deal, warning of stronger military action if talks fail.
With uncertainty dominating global markets, analysts believe precious metals could remain volatile but well-supported in the near term.
