Mumbai’s precious metals market witnessed another historic day as gold and silver prices skyrocketed to unprecedented levels on Tuesday, fueled by escalating geopolitical frictions worldwide. The MCX benchmark for February gold futures smashed through previous highs, touching 1,47,996 rupees per 10 grams, while March silver futures soared to 3,19,949 rupees per kilogram.
This surge follows Monday’s already record-breaking session, where gold had hit 1,45,500 rupees and silver 3,01,315 rupees per kilogram. Internationally, Comex silver reached 94.320 dollars per ounce, and gold climbed to 4,708.10 dollars per ounce, surpassing the prior peak of 4,689.39 dollars.
The catalyst? Heightened global anxieties stemming from U.S. President Donald Trump’s provocative statements on Greenland and fresh tariff threats against eight European nations opposing his stance. Investors, seeking refuge in safe-haven assets, piled into gold and silver, driving prices higher.
As markets closed for the report, MCX gold was up 1.55% at 1,47,894 rupees, and silver gained 2.35% or 7,279 rupees to 3,17,554 rupees per kilogram. Trump’s announcement of new tariffs on dissenting European countries, coupled with his refusal to rule out force in acquiring Greenland, sent shockwaves through global markets.
European leaders responded swiftly. French President Emmanuel Macron vowed to activate the EU’s ‘anti-coercion’ mechanism, while German Chancellor Friedrich Merz urged restraint. Denmark’s decision to bolster military presence in Greenland further amplified geopolitical uncertainties.
Market watchers are also eyeing potential clashes between the Trump administration and the Federal Reserve, raising concerns over central bank independence—a factor bolstering precious metals. Expectations of further U.S. interest rate cuts in 2025 continue to provide tailwinds.
Experts attribute the rally not just to safe-haven demand but also to silver’s booming industrial applications in solar energy, electric vehicles, and electronics. Technically, Comex silver remains bullish, with support at 85-88 dollars per ounce.
A recent Augmont report cautions of possible profit-taking, potentially pulling silver to 84 dollars or 2,60,000 rupees per kilogram, but anticipates renewed upside amid supply worries and rising industrial needs. Long-term, analysts see sustained strength in both metals despite short-term volatility.