Mumbai: Precious metals experienced a sharp uptick on Monday as escalating international conflicts and a weakening US dollar prompted investors to flock to safe-haven assets.
Gold and silver rates climbed notably in both domestic and global markets, reflecting heightened anxiety over geopolitical developments.
On the Multi Commodity Exchange (MCX), April delivery gold futures advanced 1.83 percent, reaching Rs 78,650 per 10 grams. Silver futures for March delivery jumped 2.5 percent to Rs 92,000 per kilogram.
In the spot market, 24-carat gold was quoted at Rs 78,450 per 10 grams in Delhi, marking an increase of Rs 1,200 from the prior close. Silver prices rose Rs 2,000 to Rs 90,500 per kilogram.
Analysts attributed the surge to intensifying tensions in the Middle East, persistent unrest in Ukraine, and renewed US-China trade frictions, which have unsettled global economies.
“The current geopolitical landscape is pushing investors toward traditional safe havens like gold and silver, especially with the US dollar index dropping below 100,” said a commodity expert speaking to ANI.
Internationally, spot gold hit $2,650 per ounce, up 1.5 percent, while silver climbed to $32.50 per ounce, gaining 3 percent.
Market watchers noted that the US Federal Reserve’s hints at potential rate cuts further bolstered the appeal of non-yielding assets like precious metals. Domestic jewelers reported increased buying interest ahead of the festive season, adding to the momentum.
However, some caution that if tensions de-escalate, prices could face downward pressure from profit-taking. The rally aligns with broader market trends, where equity indices showed mixed responses amid the same uncertainties.
Also read : Markets Rally On US Tariff Reprieve: Sensex and Nifty Edge Up As Investor Worries Ease
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