Silver spikes Rs 9,900, gold rises over Rs 2K as US takes control in Venezuela

Gold and silver prices opened sharply higher on Monday, reflecting a global rush toward safe-haven assets after the United States’ dramatic intervention in Venezuela over the weekend. On the MCX, silver futures for March delivery surged nearly Rs 10,000 per kg in early trade, while gold futures rose over Rs 2,000 per 10 grams.

MCX silver futures jumped 4.18% to Rs 2,46,198 per kg, while MCX gold February futures gained 1.5% to Rs 1,37,795 per 10 grams, as investors flocked to bullion amid escalating US–Venezuela tensions.

Gold and silver extended their bullish momentum after the US captured Venezuelan President Nicolas Maduro over the weekend, triggering heightened geopolitical uncertainty and a sharp flight to safety.

With global investors seeking refuge in precious metals, both gold and silver continued their upward march in international and domestic markets. Spot silver surged 4.5% to $75.86 an ounce, while spot gold rose 1.5% to $4,395.35 per ounce, marking a fresh one-week high. U.S. gold futures for February delivery jumped 1.8% to $4,405.40.

The rally follows a stellar 2025 performance, where silver gained nearly 147% and gold rose 64% annually—their strongest runs since 1979.

Safe-haven demand was further amplified after President Trump confirmed that Washington would temporarily "run" Venezuela until a proper political transition occurs. The military action has added uncertainty over the country’s leadership and oil supplies, which analysts expect to remain a key driver for bullion markets in the near term.

Adding to the momentum are expectations of at least two U.S. rate cuts in 2026 and structural deficits in silver, particularly after China imposed export restrictions on refined silver. China contributes nearly 60–70% of the global silver supply, and any disruption there could further tighten an already constrained market.

Meanwhile, MCX silver futures rallied to Rs 2,36,316 per kg, with tight physical supply reinforcing bullish momentum. Ponmudi noted that silver has formed a bullish inside-harami pattern, and a sustained move above Rs 2,40,000 could accelerate gains toward Rs 2,50,000–2,60,000.

Jigar Trivedi, Senior Research Analyst – Currencies & Commodities at Reliance Securities, echoed the bullish outlook. He expects MCX Silver March futures to rise toward Rs 2,41,000/kg, supported by strong international cues. For MCX Gold February futures, he flagged Rs 1,38,000/10g as immediate resistance and said the trend is likely to remain positive in line with global developments.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)