NEW DELHI, Jan 5: Gold and silver prices rose sharply in futures trade on Monday, tracking strong global trends, as renewed geopolitical tensions in Venezuela and expectations around key US macroeconomic data boosted investor sentiment.
On the Multi Commodity Exchange (MCX), gold futures for February delivery climbed by Rs 1,509, or 1.11 per cent, to Rs 1,37,270 per 10 grams in a business turnover of 15,226 lots.
The yellow metal had retreated in the past week, declining by Rs 4,112, or 2.94 per cent, after hitting record highs in late December.
Similarly, silver futures witnessed robust gains on the MCX. The white metal for the March contract surged by Rs 6,434, or 2.72 per cent, to Rs 2,42,750 per kilogram in 13,112 lots. It had slumped by Rs 3,471, or 1.45 per cent, in the past week.
In the international market, Comex gold futures for February delivery rose USD 86.4, or 2 per cent, to USD 4,416 per ounce. The yellow metal had dipped by USD 223.1, or 4.9 per cent, during the holiday-shortened week to end at USD 4,329.6 per ounce on Friday.
After witnessing volatility last week, gold futures rebounded towards USD 4,500 per ounce, supported by renewed geopolitical tensions after US forces captured Venezuelan President Nicolas Maduro, Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said.
On Saturday, President Donald Trump said that the US would “run” Venezuela until a proper political transition takes place, while Secretary of State Marco Rubio indicated that Washington could achieve its objectives without directly governing the Latin American nation.
Comex silver futures also posted strong gains, climbing by USD 4.19, nearly 6 per cent, to USD 75.20 per ounce in the overseas trade. The white metal declined sharply by 8 per cent, or USD 6.18, in the previous week.
It had hit a record of USD 82.67 per ounce before tumbling 14.1 per cent, or USD 11.65, to settle at USD 71.01 per ounce.
“Investors are also focusing on key US economic data this week, led by the December jobs report on Friday, for insights into the Federal Reserve’s monetary policy direction,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.
He noted that silver surged nearly 150 per cent last year, driven by a mix of factors such as supply constraints, robust industrial and investment demand, and supportive macroeconomic conditions.
China, which produces 60-70 per cent of the world’s refined silver, has also imposed export restrictions this year, worsening an already tight supply situation, Trivedi said. (PTI)
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