New Delhi: The prices of gold and silver surged again on Tuesday, with silver crossing the ₹2.5 lakh per kilogram mark. On the Multi Commodity Exchange (MCX), silver for March delivery rose by more than 1.5% during early trading. By 10 AM, it was trading at ₹2,50,238 per kilogram, a jump of over ₹4,000. From Monday to Tuesday morning, silver prices surged by more than ₹17,000.
Similarly, gold also saw an increase on Tuesday morning. The price of gold for February delivery on MCX rose by ₹420 to ₹1,38,540 per 10 grams by 10 AM. On Monday, the price had increased by over ₹2,000. On Monday, silver prices on MCX had surged by ₹13,584 per kilogram, reaching a high of ₹2,49,900 during the day. On Friday, silver had closed at ₹2,35,873.
Why Did Silver Prices Rise?
The increase in silver prices is attributed to growing global unrest, prompting investors to turn to safe-haven assets like precious metals. Last week, a military operation by the U.S. in Venezuela added to geopolitical uncertainties, which led to a sharp rise in the prices of precious metals. The U.S. military carried out an operation in Venezuela, arresting President Nicolás Maduro and his wife.
Despite Venezuela’s struggling economy and rising inflation, the military action has heightened global concerns. Venezuela holds some of the world’s largest reserves of crude oil, making the situation geopolitically significant. This has fueled demand for safe-haven assets like gold and silver.
Increased Tension and U.S. Warnings
Further adding to the tension, U.S. President Joe Biden issued stern warnings to Colombia, Cuba, and Mexico over illegal drug shipments. This has increased market unease. Following Maduro’s arrest, Swiss authorities reportedly froze his assets, which analysts believe could further drive investment into safe-haven assets like gold and silver.
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