• Gold’s break above $5200 and silver’s surge past $115 mark a decisive escalation in the precious metals rally, driven primarily by a sharp weakening of the US dollar and rising policy uncertainty.
  • The dollar slipping to a four-year low, combined with slumping US consumer confidence and concerns over the labour market, has strengthened the case for defensive assets.
  • President Trump’s signal that he is comfortable with a weaker dollar, along with expectations of rate cuts under a new Fed chair, has further reduced real yield support for the greenback.
  • Added to this, tariff threats and perceived pressure on Fed independence have amplified geopolitical and policy risk premiums—firmly underpinning gold and silver prices.

Technical Triggers   

  • Gold has met its targets of $5200 and is moving towards $5300 (~ ₹1,65,000). Strong support lies at $4,980–5,000, below which profit-booking could extend to $4,900 and $4,750.
  • Silver is resuming higher towards $120 (~ Rs 390,000). Key support is seen at $103 (~ ₹3,40,000); a break could lead to retracement towards $100 and $97.

Dr.Renisha Chainani, Head- Research, Augmont