Prime Highlights:
- Gold for April delivery jumped to ₹1.67 lakh per 10 grams, while silver for May delivery rose to ₹2.93 lakh per kilogram, driven by safe-haven demand.
- Investors are closely watching global economic data, including US jobs and manufacturing numbers, which could influence bullion demand and market sentiment this week.
Key Facts:
- On the Multi Commodity Exchange (MCX), gold rose ₹5,811 (3.6%) and silver gained ₹10,508 (3.72%) on Monday.
- Geopolitical tensions in the Middle East continue, keeping gold and silver attractive to Indian investors while other markets may face increased volatility.
Background:
Gold and silver prices in India rose sharply on Monday, reaching their highest levels in weeks after coordinated strikes by the US and Israel on Iran. Investors bought the metals as a safe option amid rising tensions in the Middle East.
On the Multi Commodity Exchange (MCX), gold for April delivery rose ₹5,811, or 3.6%, to ₹1.67 lakh per 10 grams, while silver for May delivery gained ₹10,508, or 3.72%, to ₹2.93 lakh per kilogram. Analysts said the increase was driven by strong demand from investors looking for secure investments during uncertain times.
Globally, Comex bullion markets mirrored the trend. Gold rose $161.8, or 3.08%, to $5,409.7 per ounce, marking a one-month high, while silver gained $4, or 4.3%, to $97.30 per ounce. “Gold crossed $5,400 per ounce as safe-haven demand intensified after joint US-Israel strikes on Iran,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities. He noted that February marked gold’s seventh consecutive monthly gain, the longest streak since 1973, fueled by geopolitical tensions, central bank buying, and investors moving away from sovereign bonds.
The impact on India extends beyond bullion. Rajeev Sharan, Head of Model Development & Research at Brickwork Ratings, said, “With nearly 90% of crude oil imported, any sustained rise in global prices feeds into higher fuel costs, inflation, and a wider current account deficit. This complicates the Reserve Bank of India’s path to disinflation and may delay rate cuts.” Analysts also expect heightened volatility in equity markets, particularly in autos, financials, and energy sectors.
Manav Modi, commodities analyst at Motilal Oswal Financial Services, said investors will watch global economic data, like US jobs and manufacturing numbers, as these could affect gold and silver demand this week.
With tensions in the Middle East continuing, gold and silver remain popular with Indian investors, while other markets may see more ups and downs.