Amid heightened volatility in global financial markets, gold and silver prices have witnessed a sharp surge, prompting investors and jewellery buyers to reassess their purchasing plans. On Monday, the first trading session of the week, bullion prices rallied strongly on the Multi Commodity Exchange (MCX), raising a crucial question: will gold and silver become costlier from here, or is a correction around the corner?

Why Did Bullion Prices Spike Suddenly?

The latest rally in gold and silver has been driven by a combination of global factors. The most prominent among them is the weakening of the US dollar, which has slipped to its lowest level since February 4. Traditionally, a softer dollar makes precious metals cheaper for buyers using other currencies, thereby boosting global demand.

Adding to this momentum are rising geopolitical uncertainties, particularly surrounding US–Iran relations. While Iran has termed the initiation of nuclear talks with the United States as “positive”, it has firmly stated that it will not give up its right to uranium enrichment. Such statements have kept geopolitical risk elevated. Historically, periods of global uncertainty push investors away from equities and towards safe-haven assets like gold and silver.

US Interest Rate Cut Expectations Provide Further Support

Another key factor strengthening bullion prices is the renewed expectation of interest rate cuts by the US Federal Reserve. San Francisco Fed President Mary Daly recently highlighted concerns over weakness in the US labour market and indicated support for one or two additional rate cuts.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making them more attractive. Even the anticipation of monetary easing has been enough to fuel a bullish trend in precious metals.

Current Gold and Silver Prices

According to MCX data:

• Gold (February delivery) rose by 1.31 per cent to ₹1,57,484 per 10 grams.

• Silver (March delivery) surged 4.81 per cent to ₹2,61,900 per kilogram.
  During intraday trade, silver briefly jumped nearly 6 per cent to ₹2,64,885 before easing slightly due to profit booking.

Key Technical Levels to Watch

Market analysts tracking technical charts have identified important price levels:

• Gold

  • Support: ₹1,54,000 and ₹1,51,800

  • Resistance: ₹1,57,700 to ₹1,60,000

• Silver

  • Support: ₹2,36,600 and ₹2,44,000

These levels are expected to guide near-term price movements.

Opportunity or Risk for Investors?

Experts believe that bullion prices may remain elevated and range-bound in the near term rather than witnessing a sharp decline. Silver continues to benefit from strong industrial demand and a structural supply deficit, limiting downside risks. Meanwhile, aggressive gold purchases by central banks worldwide and signs of easing global monetary policy suggest that the long-term trend for precious metals remains positive.