Gold & Silver Surge on Venezuela Unrest

New Delhi, Jan 6 (PTI) Gold and silver prices rose on Tuesday in both domestic and international futures trade, as investors flocked towards safe-haven asset amid heightened political turmoil in Venezuela and rising geopolitical tensions involving the US and Latin American nations.

On the Multi Commodity Exchange (MCX), gold futures for February delivery increased by Rs 445, or 0.32 per cent, to Rs 1,38,565 per 10 grams in a business turnover of 14,949 lots.

Silver futures, too, strengthened on the commodities bourse, with the March contract soaring Rs 3,715, or 1.51 per cent, to Rs 2,49,870 per kilogram in 12,105 lots.

In the international market, Comex gold futures for February gained USD 24.9, or 0.56 per cent, to USD 4,476.4 per ounce.


"Gold prices rose above USD 4,450 per ounce, marking a third consecutive session of gains, driven by increased demand for safe-haven assets amid political turmoil in Venezuela," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Silver futures for March delivery also witnessed buying by the investors. On the Comex, the white metal extended gains for the third straight day by rising USD 1.79, or 2.34 per cent, to USD 78.45 per ounce.

Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said threats by US President Donald Trump towards Colombia, Cuba, and Mexico over drug shipments have further weighed on investor sentiment.

"Reports of Swiss banks moving to seize Maduro-linked assets have also shifted sentiment in favour of precious metals," he added.

Meanwhile, weakness in rupee continued to lend support to domestic gold and silver prices. Market participants are awaiting crucial US employment data later this week to gauge the Federal Reserve's future policy direction, Kalantri said.