Could Gold and Silver Prices Reach New Heights Amid US-Venezuela Strife?
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Synopsis
In an unprecedented turn of events, gold and silver prices have surged to record levels due to rising geopolitical tensions. With a significant increase in safe-haven demand, investors are turning to precious metals as a reliable source of value. How are these market dynamics shaping the future of investments?
Key Takeaways
- Gold and silver prices hit record highs, driven by safe-haven demand.
- Geopolitical tensions between US and Venezuela are significant factors.
- Gold prices have surged 76% YTD, while silver has increased 140% YTD.
- Support and resistance levels for gold and silver are clearly defined.
- Market dynamics indicate a strong interest in precious metals.
New Delhi, Dec 23 (NationPress) The prices of gold and silver have soared by more than 1 percent, achieving unprecedented highs on Tuesday, primarily fueled by safe-haven interest due to rising tensions between the US and Venezuela.
MCX gold futures for February climbed 1.2 percent, reaching a historic peak of Rs 1,38,381 per 10 grams, and were up 1.01 percent as of 10:48 AM.
Meanwhile, MCX silver surged by 1.7 percent, hitting a record of Rs 2,16,596 per kilogram, with a further increase of 1.30 percent noted at the same time.
A decline of 0.20 percent in the dollar index during the session made gold more affordable in international markets.
The ongoing geopolitical uncertainty, particularly the escalating US-Venezuela tensions, has been a significant driver of this price rally, analysts explained.
Recent reports indicate that the US Coast Guard seized a supertanker under sanctions carrying Venezuelan oil and attempted to intercept two other Venezuela-related vessels over the weekend, intensifying the situation.
Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, remarked, “Safe haven bidding is prominent as we enter a holiday-shortened trading week amidst increased geopolitical tensions.”
The situation has been exacerbated by the murder of a Russian army general in a bomb attack on Monday, heightening geopolitical risks and bolstering demand for gold and silver, Kalantri added.
Both precious metals also benefitted from easing US inflation and the absence of notable surprises from the Bank of Japan policy meetings last week.
Currently, gold has support levels around Rs 1,35,550-1,34,710, while resistance is seen at Rs 1,37,650-1,38,470.
For silver, support is at Rs 2,11,150-2,10,280 and resistance at Rs 2,13,810-2,14,970, according to the analyst.
This year, aggressive central bank purchases, expectations of US Fed rate cuts, concerns regarding the effects of US tariffs, geopolitical tensions, and strong inflows into gold and silver ETFs have all contributed to rising prices.
Year-to-date, domestic spot gold prices have skyrocketed by 76 percent, while international gold prices have surged nearly 70 percent in 2025, positioning them for their best annual performance since 1979.
Both domestic and international silver prices have seen an increase of approximately 140 percent YTD.
Point of View
I believe it's crucial to stay informed about the fluctuating prices of gold and silver, especially in light of geopolitical tensions. These dynamics not only affect financial markets but also influence investor sentiment. The current surge in precious metal prices highlights the importance of diversifying investments and being vigilant in a volatile environment. NationPress remains committed to delivering timely and accurate updates on market trends.
NationPress
24/12/2025
Frequently Asked Questions
Why are gold and silver prices rising?
Gold and silver prices are rising primarily due to safe-haven demand amid escalating geopolitical tensions, particularly between the US and Venezuela.
What factors influence gold and silver prices?
Factors influencing gold and silver prices include geopolitical risks, inflation rates, central bank policies, and market demand.
How much have gold and silver prices increased this year?
Gold prices have increased by approximately 76 percent year-to-date, while silver prices have surged around 140 percent.
What are the current support and resistance levels for gold?
Gold has support at Rs 1,35,550-1,34,710 and resistance at Rs 1,37,650-1,38,470.
What are the current support and resistance levels for silver?
Silver has support at Rs 2,11,150-2,10,280 and resistance at Rs 2,13,810-2,14,970.
