Are Precious Metal Prices on the Rise Due to Safe-Haven Demand?
Synopsis
As geopolitical tensions rise, gold and silver prices are experiencing significant increases. Factors such as US political threats and strong industrial demand for silver are driving this upward trend. Investors are closely monitoring market conditions as they await key employment data from the US, which could influence future Federal Reserve policies.
Key Takeaways
Geopolitical tensions are driving the demand for precious metals.
Gold reached Rs 1,38,600 per 10 grams, while silver hit Rs 2,49,820 per kg.
Analysts expect continued growth due to structural demand.
Silver's industrial demand is robust, linked to various sectors.
Investors are awaiting critical U.S. employment data.
New Delhi, Jan 6 (NationPress) The prices of gold and silver have been on an upward trajectory this Tuesday amidst heightened geopolitical tensions and anticipation of global monetary easing.
Threats from US President Donald Trump directed towards Colombia, Cuba, and Mexico regarding alleged drug shipments have intensified the safe haven demand for precious metals.
MCX gold futures for February climbed by 0.35 percent to reach Rs 1,38,600 per 10 grams around 1:30 pm, while MCX silver futures for March saw a rise of 1.49 percent, reaching Rs 2,49,820 per kg, closely approaching the all-time high levels recorded in December of Rs 1,40,465 per 10 grams and Rs 2,54,174 per kg.
According to the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold on Tuesday stood at Rs 1,36,909, up from Rs 1,35,721 at the previous day's closing.
Experts indicate that the current upswing in gold and silver prices is primarily fueled by structural demand rather than transient speculative activities. Continued purchases of gold by central banks, ongoing geopolitical instability, and the expectation of global monetary easing are reinforcing gold's stature as a fundamental hedge in investment portfolios.
Silver gains additional backing from strong industrial demand linked to solar energy, electric vehicles, AI infrastructure, and broader electrification initiatives.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted that "Reports of Swiss banks moving to seize assets linked to Maduro have further bolstered bullion prices. Additionally, the weakening of the rupee continues to support domestic prices for gold and silver."
Kalantri also mentioned that gold has support levels at Rs 1,37,150-1,36,310 and resistance levels at Rs 1,39,350-1,40,670. For silver, support lies in the Rs 2,42,810 to 2,40,170 range while resistance is at Rs 2,49,810 to 2,51,470.
Investors are keenly awaiting essential U.S. employment data later this week to assess the Federal Reserve’s forthcoming policy trajectory.
Gold surged nearly 66 percent in CY25, exceeding $4,500 per ounce, while silver showcased an impressive 171 percent increase.
Point of View
It's essential to recognize the ongoing trends in precious metals. The rising demand for gold and silver, fueled by geopolitical tensions and global economic uncertainties, underscores their significance as a safe-haven investment. This shift in market dynamics warrants attention from investors and policymakers alike, as it reflects broader economic sentiments.
NationPress
14 Jul 2026
Frequently Asked Questions
What factors are driving the rise in gold and silver prices?
The rise in gold and silver prices is primarily driven by heightened geopolitical uncertainty, safe-haven demand following US political threats, and strong industrial demand for silver. Additionally, expectations of global monetary easing are reinforcing these trends.
How much did gold and silver prices increase recently?
As of January 6, gold prices rose by 0.35 percent, reaching Rs 1,38,600 per 10 grams, while silver prices increased by 1.49 percent, hitting Rs 2,49,820 per kg.
What support and resistance levels do analysts predict for gold and silver?
Analysts predict gold support levels at Rs 1,37,150-1,36,310 and resistance at Rs 1,39,350-1,40,670. For silver, support lies in the Rs 2,42,810 to 2,40,170 range, with resistance at Rs 2,49,810 to 2,51,470.
What role do central bank purchases play in the gold market?
Sustained purchases of gold by central banks contribute significantly to its demand, positioning gold as a core hedge in investment portfolios amidst global economic uncertainties.
How did gold and silver perform in CY25?
In CY25, gold surged nearly 66 percent, surpassing $4,500 per ounce, while silver significantly outperformed with a remarkable increase of 171 percent.
