Escalating US-Iran hostilities have ignited a precious metals rally, with gold and silver leading the charge despite a resilient dollar. Markets in Mumbai and beyond are on edge.
MCX snapshots at 9:48 AM: April gold +291 rupees (0.19%) to 1,55,105 rupees/10g; silver +1,690 rupees (0.70%) to 2,43,083 rupees/kg.
Investors worldwide recognize gold and silver’s role as crisis-proof stores of value. History repeats: tensions spike, bullion buying surges.
International benchmarks confirm the pattern—Comex gold at $5,009/oz (+0.24%), silver $77.815/oz (+0.21%). Annual gains stun: gold 70%, silver 132%, courtesy of unrelenting global turbulence.
The dollar index at 98, up ~1 point, adds a twist. Its strength usually caps gold’s upside, but fear trumps fundamentals here.
Oil prices underscore the risk: Brent crude nears $72/bbl with 7% weekly surge; WTI mirrors at $66.66/bbl. Iran-related supply threats fuel the fire.
Looking ahead, de-escalation could cool this rally, but for now, safe-haven flows dominate. Commodities desks brace for headline-driven swings in this powder-keg scenario.