Mumbai’s bullion markets are buzzing as gold and silver prices skyrocketed to record highs on Thursday, fueled by escalating geopolitical tensions sparked by US President Donald Trump’s stark warning to Iran. Investors worldwide rushed to these safe-haven assets amid fears of military action in the Middle East.
Trump’s threat of heightened military measures against Iran’s nuclear program, coupled with reports of increased US troop deployments in the region, sent shockwaves through global markets. The US dollar weakened further, amplifying the appeal of precious metals. Central banks’ aggressive buying spurt added rocket fuel to the rally.
On the MCX, February gold futures leaped 6.98%, or Rs 11,575, to Rs 1,77,490 per 10 grams by midday. March silver contracts surged 6.13%, or Rs 23,633, to Rs 4,08,999 per kg. Internationally, silver hovered near $120 per ounce, boasting over 60% gains year-to-date due to persistent supply shortages.
The Federal Reserve’s decision to hold interest rates steady played a pivotal role, signaling prolonged low-rate policies that favor non-yielding assets like gold. Experts note that what was once a resistance level around $5,600 per ounce has now flipped to robust support, underscoring the bullish momentum.
US-China tariff frictions and looming government shutdown risks have only intensified demand for havens. Analysts predict sustained upside for gold and silver, driven by global economic slowdowns, ballooning US debt, and dollar debility. Even potential dips could lure bargain hunters in this liquidity-rich environment.
As uncertainties mount, precious metals shine brighter than ever, offering a bulwark against volatility for prudent investors.