Precious metals are seeding strong move in early Monday trade. Both gold an silver are string, a multi-week highs. The surge in silver is definitely stronger, given the higher volatility seen in this white metal.
The geo-poltical risk in West Asia coupled with the US Supreme Court decision on Trump’s tariff and his announcements soon after are impacting investor sentiment.
Gold steady above $5,000/oz level
Gold rose to a more than three-week high and Spot gold climbed 1.2% to $5,163.60 per ounce as the dollar fell after the US Supreme Court struck down a vast swathe of President Donald Trump’s tariffs.
The dollar fell as traders took the US Supreme Court’s decision to strike down most of Trump’s tariffs as supportive for global growth, though confusion and risk of conflict in the Middle East kept moves relatively small. However, volumes continue to be thin as the Mainland China markets are closed for Lunar New year holidays. Trading is set to resume on Tuesday.
Speaking on the gold’s outlpook Jigar Trivedi, Senior Research Analyst at Indusind Securities explained that, “Gold climbed nearly 1.5% to around $5,150/oz, reaching its highest point in over three weeks as renewed tariff worries prompted a rush to safe-haven assets. On Saturday, US President Donald Trump announced plans to raise global tariffs from 10% to 15%, following the US Supreme Court’s rejection of his ‘reciprocal tariffs.’
He added that “Trump confirmed the new duties would take effect immediately, although it remained unclear whether he had signed any official document. Meanwhile, Europe’s trade commissioner signaled on Sunday a proposal to halt ratification of the trade deal with the U.S, while India postponed negotiations aimed at finalizing an interim trade deal with Washington. Investors also faced growing fears of a potential US military strike on Iran, with nuclear talks at an impasse. However, negotiators are scheduled to meet again in Geneva on Thursday. MCX Gold April futures is likely to gain to Rs 160,000/10g as the trend is positive in the world markets too.”
Silver surges 5%
Silver, meanwhile, saw a strong upmove in holiday-impacted session. Volumes could be thin but the overall price action is significantly sharp.
Speaking on Silver’s surge as trade uncertainties return, Jigar Trivedi, Senior Research Analyst at IndusInd Securities highlighted that, “Silver climbed 2% to trade above $86/oz, extending gains to a fourth session as renewed tariff tensions boosted demand for safe-haven assets. US President Donald Trump raised a global levy from 10% to 15% following the US Supreme Court’s rejection of his “reciprocal” tariffs. Meanwhile, Europe’s trade chief said Sunday he would seek to suspend ratification of a trade agreement with the US, while India delayed talks aimed at finalizing an interim deal with Washington. However, US Trade Representative Jamieson Greer stated that existing trade arrangements with key partners, including China, the EU, Japan and South Korea, would remain in effect.”
He believes that “Investors also grappled with growing fears that the Trump administration could initiate military action against Iran amid stalled nuclear negotiations, although diplomats are set to reconvene in Geneva on Thursday. Silver and other metals may see higher trading volumes this week as Chinese markets reopen following a long holiday. MCX Silver March prices are likely to appreciate to Rs 265,000/kg amid a bullish trend in the international markets.”
All eyes are on the price action on MCX as of now.