The rates of gold and silver saw massive gains and hit their record highs in early deals on the MCX on Monday, January 12, as investors rushed to safe-haven assets on rising geopolitical uncertainties, the dollar’s fall, and increased prospects of US Fed rate cuts this year.
MCX gold February futures jumped 1.5% to hit a record high of 1,40,839 per 10 grams, while MCX silver March futures surged over 4% to scale its fresh peak of Rs 2,63,996 per kg.
International gold prices breached the $4,600-per-troy-ounce mark for the first time on Monday, with US gold futures for February delivery reaching $4,612.40 per ounce, driven by geopolitical and economic uncertainties, as well as the dollar’s decline against its peers.
The dollar index fell by about 0.20% in response to reports that US prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell.
As Reuters reported, Powell said the Trump administration had threatened him with a criminal indictment.
According to a Reuters report, the Trump administration has threatened to indict Powell over his testimony last summer to Congress about a Fed building project.
Powell has termed the action a pretext to gain more influence over the central bank and monetary policy, according to Reuters.
On the geopolitical front, investors are keenly observing the situation in Latin America and the Middle East.
The recent US-Venezuela conflict, Trump’s aggression over Greenland, protests in Iran, and renewed concerns over US tariffs have heightened geopolitical risks, driving a surge in demand for precious metals.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
