Gold and silver prices surged to record highs in the domestic futures market on Monday, October 21, 2024. Strong demand and global factors drove this rise. MCX Gold for December 5 expiry reached ₹78,240 per 10 grams. MCX Silver for the same expiry hit ₹98,224 per kg, reported by Mint. In global markets, spot gold rate climbed to $2,725.81, while silver hit a 12-year high. This surge is largely due to geopolitical tensions and uncertainties surrounding the US presidential election.

The conflict in West Asia plays a key role in this price movement. Reports suggest Israel is preparing to target Hezbollah-linked sites. This has increased the demand for safe-haven assets like gold and silver. Historically, gold prices rise when geopolitical risks increase. Investors turn to precious metals to protect against economic instability.

Political uncertainty in the US has added to the volatility. The closely contested race between Donald Trump and Kamala Harris has left markets on edge. Investors are seeking refuge in safe assets like gold and silver during this period. Both metals offer stability during uncertain times.

Gold's price rise to ₹78,240 per 10 grams marks a significant increase. Similarly, silver reaching ₹98,224 per kg sets a new record. Investors flock to these metals as safe investments during market turbulence. Gold has always been a reliable choice during economic and political instability.

The spot gold rate internationally reached $2,725.81. This reflects the growing demand for the yellow metal globally. Silver also showed strength, hitting its highest level in 12 years. Investors are concerned about global economic conditions and disruptions. Inflation and interest rate changes are adding to this demand, further boosting prices.

The role of the US dollar is crucial in this scenario. The dollar index has remained stable, supporting gold and silver prices. Typically, a strong dollar pushes gold prices down, but geopolitical risks are driving them up this time. Interest rates also influence gold and silver prices. Lower rates make these metals more attractive as they offer no yield, and the opportunity cost of holding them drops.

Central banks, including the US Federal Reserve, have adopted dovish stances. This has created a favorable environment for gold and silver. Lower interest rates reduce the appeal of bonds and other income-generating assets. Investors turn to precious metals for safety.

Increased physical demand for gold and silver has also contributed to the price rise. In India, the festive season has driven up gold demand. This has had a direct impact on the domestic futures market. Silver’s price surge highlights its growing industrial demand. Industries like electronics, solar panels, and medical equipment use silver extensively. Both industrial and investment demand have pushed silver prices higher.

Looking at the charts, both metals show strong bullish trends. Gold has broken key resistance levels, indicating further gains. Silver’s price action suggests continued strength as well. Both metals are likely to maintain this upward trajectory in the short term.

Investors are watching the upcoming US Federal Reserve meetings closely. Any dovish signals from the Fed could lead to further gains for both metals. Gold and silver offer stability in an uncertain economic environment. With geopolitical tensions and election uncertainty, these assets are expected to remain in high demand.

In summary, gold and silver prices have hit record highs due to a combination of geopolitical tensions, economic uncertainty, and strong demand. Investors are turning to precious metals for security. Current market conditions suggest both gold and silver will see continued price movements in the coming days. The spot gold rate and silver prices will likely stay elevated as long as geopolitical risks and economic uncertainties persist. Investors should monitor key levels for further indications of price action, with both metals set to remain highly volatile in the near term.