President Trump’s pointed ultimatum to Iran over its nuclear ambitions triggered a massive safe-haven bid Thursday, catapulting gold and silver to dizzying heights in frenzied trading. Global jitters over potential conflict overshadowed equities and bonds.
With US military reinforcements streaming into the Middle East, Trump’s call for dialogue—or else—rattled nerves. Central banks scooped up bullion relentlessly, while dollar slides and Fed rate inertia poured oil on the fire.
MCX gold for February expiry exploded 6.98% higher by Rs 11,575 to Rs 1,77,490 per 10 grams at midday. Silver March contracts gained 6.13% (Rs 23,633) to reach Rs 4,08,999/kg. Overseas, silver traded near $120/oz after 60%+ annual advances tied to supply woes.
Analysts marvel at the trend strength, with $5,600/oz evolving from ceiling to safety net. US trade wars, shutdown threats, exploding deficits, dollar weakness, and recession risks form a perfect storm for precious metals.
Prolonged cheap money from the Fed keeps cash chasing yield-free assets. Savvy observers see pullbacks as prime entry points.
History affirms: in eras of strife and fiscal folly, gold and silver reign supreme as wealth’s ultimate sentinels.