Mumbai’s commodity markets are buzzing as escalating tensions between the United States and Iran drive investors towards safe-haven assets. Gold and silver prices have spiked sharply, reflecting global uncertainty.
On the Multi Commodity Exchange (MCX), gold for April delivery climbed 291 rupees, or 0.19%, to 1,55,105 rupees per 10 grams by 9:48 AM. Silver followed suit, gaining 1,690 rupees, or 0.70%, to reach 2,43,083 rupees per kilogram.
The rally stems from heightened geopolitical risks, prompting a rush into precious metals traditionally viewed as bulwarks against instability. As conflicts brew, these assets shine brighter in investors’ portfolios.
This trend mirrors international markets. On Comex, spot gold rose 0.24% to $5,009 per ounce, while silver edged up 0.21% to $77.815 per ounce. Over the past year, gold has surged 70% and silver an astonishing 132%, fueled by worldwide volatility.
Surprisingly, the US dollar index has also fortified, hovering at 98 after gaining nearly a point recently. Typically, a stronger dollar pressures gold and silver prices downward, but current tensions override this inverse relationship.
Meanwhile, crude oil prices have rocketed to multi-month highs amid fears of supply disruptions. Brent crude trades near $72 per barrel, up 7% in the last week, with WTI at $66.66 per barrel showing similar gains.
Market watchers caution that while safe-haven buying persists, any de-escalation in US-Iran standoff could trigger pullbacks. Investors remain glued to headlines from the Middle East, where every development sways these key commodities.