Mumbai, 9 February. Due to the weakening of the US dollar and ongoing geopolitical tensions in the world, there was a strong rise in the prices of gold and silver on Monday. On MCX, gold for February delivery rose by 1.31 percent to Rs 1,57,484 per 10 grams. At the same time, the price of silver for March delivery jumped 4.81 percent to Rs 2,61,900 per kg. Earlier in the day, silver prices on MCX had risen by nearly 6 per cent to reach a high of Rs 2,64,885 per kg. However, later the prices fell slightly due to profit booking.

The US dollar fell to its lowest level since February 4. This made metals denominated in dollars, such as gold and silver, cheaper for foreign buyers. Even though Iran’s top diplomat on Friday described the US-Iran nuclear talks as a good start, Iran has clearly said that it will not give up the right to enrich uranium. Analysts say that global tensions may persist for a long time, due to which investors will continue to turn to safe investments like gold and silver.

Expectations of the US Federal Reserve cutting interest rates further increased after San Francisco Fed President Mary Daly called for one or two more interest rate cuts to address labor market weakness. Analysts say that this has also supported the prices of gold and silver. According to an analyst, gold may find support at Rs 1,54,000 and Rs 1,51,800, while there is resistance at Rs 1,57,700 and Rs 1,60,000.

Silver has support at Rs 2,36,600 and Rs 2,44,000, while resistance can be seen at Rs 2,55,500 and Rs 2,62,600. According to a recent report, the price of silver has increased from Rs 60,000 to Rs 3,20,000. In such a situation, prices may remain stable at higher levels for some time or investors may balance their investments. Silver prices are being supported by structural supply constraints and steady industrial demand. Besides, continued demand for safe investments, purchases by central banks and expectations of soft monetary policies globally are also strengthening the prices of gold and silver.