Gold and silver prices surged to fresh record levels on Tuesday as rising global geopolitical tensions boosted safe-haven demand in international markets. Escalating friction between the United States and Venezuela, along with broader security concerns, pushed investors toward precious metals.
On the Multi Commodity Exchange (MCX), February gold futures jumped 1.2 percent to hit an all-time high of ₹1,38,381 per 10 grams. By 10:48 am, gold was trading with gains of around 1 percent. Silver prices climbed even faster, with MCX silver futures rising 1.7 percent to a record ₹2,16,596 per kilogram. Later in the session, silver continued to trade over 1.30 percent higher.
Market analysts say geopolitical uncertainty has played a key role in driving prices higher. Reports of the US Coast Guard seizing a Venezuelan oil tanker and attempting to intercept other vessels have raised concerns in global markets. In addition, the killing of a Russian army general in a bomb attack has further heightened security fears worldwide.
Another major factor supporting precious metals is the weakening US dollar. The dollar index slipped by around 0.20 percent, making gold cheaper for holders of other currencies and increasing global demand.
Experts also point to expectations of US Federal Reserve interest rate cuts, strong central bank gold purchases, and steady inflows into gold exchange-traded funds (ETFs) as key drivers of the rally.
So far this year, domestic gold prices have risen by nearly 76 percent, while international gold prices have gained close to 70 percent. Silver has outperformed gold, surging around 140 percent in both domestic and global markets.
With geopolitical risks remaining elevated and monetary policy uncertainty continuing, analysts believe gold and silver prices may stay firm in the near term.