Silver and gold extended their glittering rallies on Thursday, hitting record levels on the Multi Commodity Exchange (MCX) as investors flocked to safe-haven assets amid ongoing geopolitcal tensions. For the first time in MCX history, silver jumped past Rs 4 lakh per kg, while gold futures moved within striking distance of Rs 1.8 lakh per 10 grams, reflecting intense risk-off sentiment across global markets.
MCX gold contracts expiring on February 5, 2026 rose nearly 6%, gaining Rs 9,954 to trade at Rs 1,75,869 per 10 grams. Silver futures for March 5, 2026 jumped Rs 15,414, or about 5%, to Rs 4,00,780 per kg.
The surge comes after the US Federal Reserve’s decision to leave interest rates unchanged, alongside indications that further rate hikes are unlikely. Lower expectations of tighter monetary policy typically support non-yielding assets such as gold and silver, ET reported.
Geopolitical developments added fresh fuel to the rally. Safe-haven buying intensified after US President Donald Trump issued a warning to Iran over stalled nuclear negotiations, stating that “time is running out,” while confirming an expanded US military deployment in the Gulf, including what he described as a “massive armada” moving towards the region.
The rally was mirrored in international markets, where precious metals also scaled unprecedented levels. Spot gold jumped nearly 3% to touch an all-time high of $5,591.61 an ounce, extending gains of over 10% this week. Spot silver climbed to $118.061 an ounce, after briefly hitting a fresh lifetime high of $119.34 earlier in the session.
Market participants said silver has benefited from strong spillover demand as investors seek relatively cheaper alternatives to gold, while tight supply conditions and momentum-based buying have further accelerated gains.
Manoj Kumar Jain, partner at Prithvi Finmart, told ET that volatility in precious metals is likely to remain elevated in the near term, driven by swings in the dollar index, upcoming US jobless claims data and ongoing geopolitical uncertainty.
He sees international gold holding support in the $5,140–$5,220 range, with resistance near $5,500–$5,650, while silver may find support between $106.60–$110 and face resistance at $118–$123 per ounce.
On the domestic exchange, Jain said gold is expected to remain supported above Rs 1,61,600–1,64,000, while silver may hold above Rs 3,64,800–3,74,000. He advises maintaining a buy-on-dips approach in gold above Rs 1,64,400, targeting Rs 1,70,000–1,75,000, and in silver above Rs 3,64,000, with an upside target of Rs 4,00,000–4,10,000.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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