Overview
- Spot gold climbed roughly 1.5% to fresh highs near $4,690 an ounce, while silver jumped up to about $94 as risk assets and the dollar weakened.
- India’s MCX silver futures breached ₹3,00,000 per kg for the first time, hitting ₹3,01,315, while domestic gold futures set new peaks around ₹1,45,500 per 10 grams.
- The latest surge followed President Donald Trump’s threat to levy 10% tariffs on key European nations from February 1, rising to 25% in June, with EU leaders weighing retaliatory steps and emergency talks.
- Supportive tailwinds included expectations of further Federal Reserve easing, a softer dollar, central-bank buying, and renewed ETF inflows, with SPDR Gold Trust holdings up 1.01% to 1,085.67 tonnes.
- Strategists highlighted silver’s industrial demand and tight supply as amplifiers of gains but cautioned on elevated volatility, noting warnings of a sharp correction as prices approach $100 per ounce and some banks projecting gold near $5,000.