Geopolitical storm clouds over the Middle East sent shockwaves through global commodity markets, with gold and silver emerging as top performers on MCX Monday. Investors sought refuge in precious metals as US-Israel strikes on Iran raised specters of all-out war, driving prices up sharply by more than 3%.
April gold contracts on MCX blasted past 3% gains to a daily peak of 1,67,915 rupees for 10 grams, while March silver hit 2,85,978 rupees per kg at its intraday high. As trading progressed to around 10:46 AM, gold held a 2.85% advance at 1,66,716 rupees (up 4,612 points), and silver traded 2.66% higher at 2,82,309 rupees (gain of 7,311 rupees).
Iran’s counteroffensive with missiles targeting Israel and US Gulf positions followed Israel’s hits on key Iranian military infrastructure. The plot thickened with unconfirmed reports—no, confirmed intelligence—of Supreme Leader Ayatollah Ali Khamenei’s demise in the US-Israel assault, amplifying fears of Strait of Hormuz oil chokepoint risks.
‘This extends gold’s momentum from last week, with Trump’s tariffs adding economic fog to the war haze,’ observed Motilal Oswal’s Manav Modi. A firmer dollar index at 97.85 (up 0.24%) tempered some enthusiasm by hiking gold’s appeal threshold for foreign buyers.
Oil prices rocketed over 7% on supply disruption worries, mirroring the flight to safety. Market watchers pivot to vital PMI releases and US jobs data for cues.
Gold’s 2025 performance—a whopping 64% surge—stems from central banks’ voracious buying, massive ETF investments, and Fed softening bets. Looking ahead, JPMorgan eyes $6,300/oz by late 2026; BofA sees $6,000/oz, signaling sustained strength.