Silver Hits Record High, Gold Prices Surge today, July 12!

Prices of silver and gold have risen through the roof in the world, fueled by heightened trade tensions and hopes of a dovish US Federal Reserve. In India, prices of silver have broken all-time highs, going past ₹1.11 lakh/kg in the spot market. In the Multi Commodity Exchange (MCX), silver futures have crossed ₹1.10 lakh/kg, and prices of gold have also risen substantially.

Causes behind the Proliferation

Several factors have been responsible for the increase in silver and gold prices:

• Global Trade tensions: The US move to introduce tough new tariffs on Canadian imports and Brazilian goods has resulted in heightened risk aversion within the market, prompting investors to seek refuge in safe-haven assets such as silver and gold.
• Fed Policy Easing Expectations: Chances of Fed rate cutting have fueled inflation worries, with precious metals demand increasing.
• Resilience of US Economy: The resilience of the US economy has also played a support role to silver prices, as it has dual industrial and safe-haven attributes.

Market Outlook

Analysts believe the price of silver and gold to be choppy in the near term, with trade policy risks continuing to influence prices and increased dollar index volatility. Silver on the MCX may touch the ₹1,14,000-1,15,000 level, while COMEX silver may reach $40 an ounce.

Most Important Resistance and Support Points

Silver: The upcoming resistance level for silver is between $37.40 and 37.55, with support at $36.60-36.85. On the domestic front, silver has crossed resistance levels of ₹1,09,950-1,10,700.
Gold: The prices of gold are likely to remain strong above $3,280 for the week, with August gold last up $33.60 at $3,359.30.

Market Sentiment

The market mood is defensive, with investors waiting for possible new US announcements that can further raise the geopolitical risk. The yield on the benchmark 10-year US Treasury note is currently at 4.391%, and Nymex crude oil futures prices are stronger, trading around $67.25 a barrel.

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