Mumbai: Rising geopolitical tensions following US President Donald Trump’s threat of military action against Iran have significantly increased demand for safe-haven assets like gold and silver. On Thursday, the prices of these precious metals surged to record levels.
Purchases by central banks and a weakening US dollar have further driven up the prices of gold and silver, boosting investor confidence in these metals.
On the Multi Commodity Exchange (MCX), gold for February delivery rose by 6.98 percent, or ₹11,575, reaching ₹1,77,490 per 10 grams by 12:02 pm. Meanwhile, silver for March delivery climbed 6.13 percent, gaining ₹23,633 to close at ₹4,08,999 per kilogram.
In the international market, silver hovered around $120 per ounce. So far this year, silver prices have increased by over 60 percent, largely due to supply shortages.
This sharp rise in precious metal prices followed the US Federal Reserve’s decision to keep interest rates unchanged, encouraging investors to buy more gold and silver.
Reports indicate that the US has increased its military presence in the Middle East. Subsequently, President Trump urged Iran to resume negotiations on its nuclear programme, warning that refusal could lead to stricter US actions.
In the US market, April delivery gold futures rose by $300 to cross $5,588.71 per ounce, having earlier touched a record high of $5,626.
Experts note that the previous resistance level near $5,600 has now become a strong support, indicating a sustained uptrend in gold prices.
Additionally, rising trade tensions between the US and its allies and concerns over a potential US government shutdown have increased demand for safe investments. Analysts point out that global economic slowdown, rising US debt, and a weak dollar are positive factors for gold and silver in the long term.
Experts also highlight that the Federal Reserve’s signals of prolonged low interest rates will maintain market liquidity. Hence, any minor price dips could be seen as buying opportunities by investors.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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