Gold, silver prices hit 1-week high as geopolitical tensions intensify. Time to book profits?

Gold and silver prices opened on a strong note on Tuesday, surging to their highest levels in a week amid mounting geopolitical tensions. On the Multi Commodity Exchange (MCX), gold February futures were seen trading at Rs 1,38,578 per 10 grams, up Rs 458 or 0.33%, while silver March futures jumped Rs 3,096 or 1.26% to Rs 2,49,251 per kilogram.

The gains reflect continued safe-haven buying as investors respond to heightened uncertainty surrounding global developments. With investor sentiment leaning defensive, bullion continues to find support as a hedge against volatility.

In a highly volatile session on Monday, gold and silver prices surged in both domestic and international markets, propelled by escalating geopolitical tensions. The spark came after the US reportedly captured Venezuela’s President Nicolas Maduro on Sunday over drug trafficking charges, triggering a wave of uncertainty across global markets.


Gold February futures settled at Rs 1,38,120 per 10 grams, registering a 1.74% gain, while silver March futures jumped 4.16% to close at Rs 2,46,155 per kilogram on the MCX. The bullish momentum was largely driven by safe-haven demand, with investors seeking shelter in precious metals amid rising fears of global instability.

Adding to the tension, the US President issued strong warnings to Colombia, Cuba and Mexico regarding illicit drug shipments, further fuelling market unease. Following Maduro’s capture, Swiss authorities reportedly ordered a freeze on his assets, a move analysts believe could deepen safe-haven flows into gold and silver.

Manoj Kumar Jain of Prithvifinmart Commodity Research commented on the developments, noting, “This act could further boost safe-haven buying for precious metals.” He also pointed out the impact of currency movements, saying, “Weakness in the rupee is supporting gold and silver prices domestically.” The US Dollar Index (DXY) hovered near the 98.25 mark, slipping marginally by 0.02%.

Despite the heightened volatility, Jain remains optimistic about support levels holding firm. “We are experiencing very high price volatility in both precious metals, but silver could hold support at $65 per troy ounce and gold around $4,240 per troy ounce on a closing basis,” he said.

Trading strategy ahead

For those looking to trade these moves, Jain recommends a “buy-on-dips” approach. He suggests:

Gold: Buy near Rs 1,37,400 to Rs 1,36,600 with a stop loss at Rs 1,35,800, targeting Rs 1,38,800 to Rs 1,39,500.

Silver: Buy near Rs 2,42,000 to Rs 2,38,000 with a stop loss below Rs 2,32,000, targeting Rs 2,48,000 to Rs 2,52,000.

He also marked key technical levels for intraday traders:

Gold support: Rs 1,37,400 to Rs 1,36,600 | Resistance: Rs 1,38,800 to Rs 1,39,500
Silver support: Rs 2,44,000 to Rs 2,41,000 | Resistance: Rs 2,49,400 to Rs 2,55,500

Gold rates in physical markets

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,03,624 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,656 per 8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,02,864 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,10,784 per 8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,02,560 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,10,488 per 8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,02,680 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,10,608 per 8 grams.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)