Geopolitical storm clouds over US-Iran relations are sending shockwaves through financial markets, boosting gold and silver while propping up the dollar. Investors are flocking to precious metals as uncertainty mounts.
MCX data at 9:48 AM showed April gold contracts up 0.19% or 291 rupees at 1,55,105 rupees. Silver outperformed with a 0.70% or 1,690-rupee jump to 2,43,083 rupees.
Safe-haven demand is the clear catalyst. Precious metals have long been go-to refuges during global flare-ups, from trade wars to regional conflicts. Today’s uptick is no exception.
Globally, the momentum is evident: Comex gold at $5,009/ounce (up 0.24%) and silver at $77.815/ounce (up 0.21%). Year-to-date, these metals have delivered blockbuster returns—70% for gold, 132% for silver—amid persistent instability.
Adding intrigue, the dollar index at 98 has strengthened recently, bucking the norm where dollar gains usually dent bullion prices. This anomaly underscores the overpowering pull of risk aversion.
Oil markets are equally volatile, with Brent crude hitting $72/barrel (7% weekly gain) and WTI at $66.66/barrel. Supply fears from potential Middle East disruptions amplify the tension.
Analysts predict sustained volatility unless diplomatic breakthroughs emerge. For now, gold and silver remain investor favorites, their luster undimmed by a robust dollar.