New Delhi, August 21: Amid global economic uncertainties, inflation concerns, and rising geopolitical tensions, gold and silver prices experienced a significant surge on the last trading day of the week, Friday. Increased volatility in currency and bond markets has driven investors towards safer investment options, bolstering both precious metals. Additionally, ongoing purchases by central banks, particularly the People’s Bank of China, along with strong investment demand, have supported gold prices.
On the Multi Commodity Exchange (MCX), gold for October delivery opened at ₹1,60,630 per 10 grams, reflecting a gain of ₹1,205 or 0.75% from the previous closing price of ₹1,59,425. During the day, it reached a low of ₹1,59,601. Although there was some profit booking during trading, prices remained strong.
As of the latest updates, October gold futures were trading at ₹1,60,549 per 10 grams, up by ₹1,124 or 0.71%. However, this is still below its annual record high of ₹1,80,779 per 10 grams.
Silver also saw robust buying activity. On the MCX, September delivery silver opened at ₹2,44,988 per kilogram, up ₹1,745 or 0.71% from its previous close of ₹2,43,243. During trading, silver reached a high of ₹2,46,229 per kilogram, marking an increase of ₹2,986 or 1.22%, while it touched a low of ₹2,44,251.
As of the latest reports, silver was trading at ₹2,45,562 per kilogram, reflecting an increase of ₹2,054 or 0.84%. However, it remains significantly below its annual record level of ₹4,20,048 per kilogram.
In the international market, precious metals also experienced upward momentum. Gold on COMEX opened at $4,577 per ounce and later peaked at $4,604.40 per ounce. It was trading at $4,612 per ounce, up by $40.60 or 0.89%.
Meanwhile, silver opened at $68.29 per ounce on COMEX and reached a high of $69.25 per ounce with an increase of $0.96. It was trading at $68.88 per ounce, reflecting a rise of $0.77 or 1.14%.
The stability of gold around $4,612 and silver near $69 per ounce has also strengthened the domestic market.
Experts indicate that preparations for extensive sanctions by the U.S. against Iran have heightened concerns in global markets. This raises the risk of disrupted energy supplies and increased inflationary pressures.
Due to this uncertainty, investors are gravitating towards safe-haven assets, benefiting gold and silver. Central bank purchases and rising investment demand continue to support prices.
Crude oil prices remain elevated, with Brent crude trading around $93.82 per barrel and U.S. WTI crude at approximately $86.78 per barrel. Over the past week, Brent crude has risen by more than 7%, while WTI has increased by over 8%.
Analysts believe that the lack of substantial progress in resolving the U.S.-Iran conflict and risks to oil supply from the Middle East are keeping oil prices strong, which in turn raises concerns about global inflation.
Market experts suggest that as long as tensions persist in the Middle East and global economic uncertainty remains, gold and silver will continue to be strong safe-haven investments. If crude oil prices stay high and geopolitical risks escalate, further increases in precious metals may be expected in the coming days.
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