Gold and Silver Soar Amid Economic Uncertainties

Gold and silver prices continue to rise with gold reaching new record highs. Despite some consolidation, geopolitical uncertainties and tariff impacts keep investor demand strong. Analysts note significant gains and support from central bank buying, forecasting further growth, especially if resistance levels are breached.

The prices of gold and silver have demonstrated a strong upward momentum, hitting record highs driven by economic uncertainties and geopolitical tensions, analysts report. Gold closed the past week higher, largely buoyed by investors seeking safe-haven assets amidst tariff impacts and international political developments.

Gold futures on the Multi Commodity Exchange climbed by Rs 1,616 for October delivery. In contrast, Comex gold futures have seen substantial increases, achieving more than 40 percent gain this year, according to Riya Singh, a research analyst at Emkay Global Financial Services. Such gains surpass the inflation-adjusted high from 1980, thanks to continuous buying by central banks despite a dip in demand for jewelry in major markets like India and China.

Silver, meanwhile, mirrored gold's ascent by recording its highest year-to-date levels since 2011. The demand for silver remains robust, supported by its industrial applications and renewed interest in renewable energies. However, analysts like Prathamesh Mallya and Riya Singh caution that the market may see added volatility if investor sentiment changes or economic projections shift.

(With inputs from agencies.)