What is the story about?
Gold and silver prices rose sharply on Monday (February 23) on the Multi Commodity Exchange (MCX), tracking global safe-haven demand and a weaker dollar.
April gold futures were trading at ₹1.60 lakh per 10 grams, up ₹3,700 or 2.4% from Friday’s (Frbruary 20's) close. March silver futures were quoted near ₹2.68 lakh per kilogram, marking a gain of ₹15,200 or 6% per kg. Both metals reached their highest levels in over three weeks.
Analysts said the moves reflected a combination of US trade and geopolitical developments, alongside expectations of gradual monetary easing. The Supreme Court of the United States’s decision to strike down a broad set of tariffs imposed by President Donald Trump pressured the dollar and reinforced bullion’s appeal as a hedge.
At the same time, simmering US-Iran tensions added a geopolitical risk premium to precious metals.
Justin Khoo, Senior Market Analyst for APAC at VT Markets, said markets are pricing in a measured easing cycle by the Federal Reserve as headline inflation cools to around 2.4%. He noted, however, that underlying inflation remains uneven, keeping immediate rate cuts unlikely.
“Current expectations indicate a high probability of no rate cuts in the near term, with a gradual and measured easing cycle likely to begin later,” Khoo said.
He added that gold is likely to remain sensitive to interest rate expectations, with price action focused around key technical levels, while broader commodities such as silver and oil may consolidate unless supported by stronger macro catalysts. Equities like the S&P 500 could continue to push higher in the near term but may face resistance, leading to potential pullbacks.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said silver inventories are witnessing significant drawdowns, particularly on Comex, reflecting tight supply and strong demand amid China’s market shutdown.
“Focus this week will be on US factory orders, consumer confidence, and producer price index data, which could influence bullion movement further,” Modi said.
-With agencies inputs
April gold futures were trading at ₹1.60 lakh per 10 grams, up ₹3,700 or 2.4% from Friday’s (Frbruary 20's) close. March silver futures were quoted near ₹2.68 lakh per kilogram, marking a gain of ₹15,200 or 6% per kg. Both metals reached their highest levels in over three weeks.
Analysts said the moves reflected a combination of US trade and geopolitical developments, alongside expectations of gradual monetary easing. The Supreme Court of the United States’s decision to strike down a broad set of tariffs imposed by President Donald Trump pressured the dollar and reinforced bullion’s appeal as a hedge.
At the same time, simmering US-Iran tensions added a geopolitical risk premium to precious metals.
Justin Khoo, Senior Market Analyst for APAC at VT Markets, said markets are pricing in a measured easing cycle by the Federal Reserve as headline inflation cools to around 2.4%. He noted, however, that underlying inflation remains uneven, keeping immediate rate cuts unlikely.
“Current expectations indicate a high probability of no rate cuts in the near term, with a gradual and measured easing cycle likely to begin later,” Khoo said.
He added that gold is likely to remain sensitive to interest rate expectations, with price action focused around key technical levels, while broader commodities such as silver and oil may consolidate unless supported by stronger macro catalysts. Equities like the S&P 500 could continue to push higher in the near term but may face resistance, leading to potential pullbacks.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, said silver inventories are witnessing significant drawdowns, particularly on Comex, reflecting tight supply and strong demand amid China’s market shutdown.
“Focus this week will be on US factory orders, consumer confidence, and producer price index data, which could influence bullion movement further,” Modi said.
-With agencies inputs
