Precious Metals Surge Amid Easing Tensions in West Asia

Mumbai, March 25: Precious metals experienced a significant rise on Wednesday, the third trading day of the week, amid hopes of reduced geopolitical tensions in West Asia. Following an increase in international bullion prices, gold and silver opened strongly in the market.

On the Multi Commodity Exchange (MCX), the April contract for gold opened at ₹143,079 per 10 grams, up 3% from the previous closing price of ₹138,912. Meanwhile, the May contract for silver opened at ₹232,898 per kilogram, reflecting a 4% increase from its last closing price of ₹223,941.

As of the time of writing (around 10:16 AM), gold for April delivery on the MCX had surged by 3.96%, or ₹5,498, reaching ₹144,410. Silver for May delivery also saw a rise of 5.49%, or ₹12,291, trading at ₹236,232 per kilogram.

On Tuesday, the previous trading day, MCX gold for April futures closed down 0.03% at ₹138,912 per 10 grams, while MCX silver for May futures fell 0.43% to close at ₹223,941 per kilogram.

On Wednesday, gold reached a high of ₹144,570 and a low of ₹143,079 per 10 grams during the trading session. Similarly, silver peaked at ₹237,169 and dipped to ₹232,898 per kilogram.

The increase in gold and silver prices is attributed to a weaker dollar and easing concerns over rising inflation and high interest rates. Additionally, reports of a U.S. plan to end the conflict in the Middle East have led to a drop in crude oil prices.

Spot gold prices rose by 2.1%, reaching $4,568.29 per ounce, while U.S. gold futures for April delivery increased by 3.8%, reaching $4,569.40. Gold prices are currently trading about 17% below pre-conflict levels.

Spot silver prices also saw a 3.8% increase, reaching $73.94 per ounce, recovering from a previous decline of up to 37% from its peak.

Experts note that these market changes are occurring as signs of easing tensions between the U.S. and Iran emerge. However, persistent inflation concerns continue to affect investor sentiment, along with expectations that the U.S. Federal Reserve may not alter interest rates.