Gold and silver prices surged sharply as geopolitical tensions and a weak US dollar boosted safe-haven demand. International gold traded above $5,000 per ounce, while silver hovered near record highs.
Market Turmoil Fuels Gold-Silver Boom
New Delhi: Amid growing global uncertainty and geopolitical tensions, gold and silver prices are experiencing a sharp rise. Both gold and silver are trading near record levels in the international market due to increased safe-haven demand. A weak dollar has also strengthened bullion.
Spot gold prices rose 1.1 percent to $5,068 per ounce, after touching a record high of $5,110 in the previous session. Meanwhile, US gold futures also edged higher to around $5,063 per ounce.
Silver saw an even greater rally. Spot silver jumped 6.3 percent to reach close to $110 per ounce, after hitting an all-time high of $117 per ounce a day earlier. Silver prices have risen by approximately 55 percent so far this year.
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The US dollar remains near a four-month low, making dollar-denominated gold less affordable for foreign investors. A potential government shutdown and policy uncertainty in the US have also increased pressure on the dollar, directly benefiting the bullion market.
Gold and silver also saw a strong rally on the domestic futures market, MCX. MCX Gold opened 1.68 percent higher on Tuesday at ₹1,58,674 per 10 grams, well above the previous close of ₹1,56,037. During trading, gold reached a high of ₹1,59,820 per 10 grams and was seen trading near the ₹1.6 lakh mark.
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MCX Silver recorded a strong rally. Silver opened with a gain of 1.53 percent at ₹3,39,824 per kg and within a short time, jumped 6 percent to reach ₹3,54,780 per kg. Silver prices increased by more than ₹20,000 in a single session.
Experts believe that factors such as a weak dollar, global tensions, and investors' distancing themselves from bonds and currencies could continue to support gold and silver. Consequently, the bullion market is expected to remain strong amid fluctuations at higher levels.
