Gold and Silver Prices Rally on Safe Haven Buying and Margin Reduction
Surge in Prices Fueled by Geopolitical Tensions and Speculative Participation
Mumbai, Feb 19 : Gold and silver prices rose for a second straight session on Thursday, driven by safe-haven demand amid escalating geopolitical tensions and the withdrawal of additional margins on domestic futures.
MCX gold April futures climbed 0.22% to Rs 1,56,100 per 10 grams, while MCX silver March futures gained 0.29% to Rs 2,44,971 per kg. The MCX and NSE removed extra margins of 3% on gold and 7% on silver futures across all contracts, encouraging higher speculative participation and increased intraday activity.
Market observers noted that thin liquidity due to Lunar New Year holidays in China and other Asian markets also contributed to price movements.
On the global front, gold hovered near $5,000 amid cautious US Federal Reserve sentiment, with mixed economic data prompting divided views on monetary policy. Fed minutes indicated some officials favor continued tightening if inflation remains sticky, while others suggested potential easing later in the year, influencing the dollar and Treasury yields.
“Safe-haven demand is supported by rising friction between the US and Iran, maritime security concerns in the Strait of Hormuz, stalled nuclear negotiations, and ongoing uncertainty from the Russia–Ukraine conflict,” said Manav Modi, commodities analyst at Motilal Oswal Financial Services.
Technical analysts identified support levels for gold at Rs 1,54,400 and Rs 1,52,200, with resistance at Rs 1,56,800 and Rs 1,59,100. Silver support lies at Rs 2,38,000 and Rs 2,32,800, while resistance is seen at Rs 2,49,000 and Rs 2,54,400.
Traders are awaiting upcoming US PCE inflation and GDP data for clearer guidance on the Federal Reserve’s policy direction, which could further influence bullion markets.
