Gold prices today extended their rally on Monday, while silver prices registered sharper gains as investors rushed towards safe-haven assets amid escalating geopolitical tensions in the Middle East.
In early trade, MCX gold rose by ₹733 to ₹1,41,322 per 10 grams, while MCX silver climbed ₹2,796 to ₹2,19,400 per kilogram. The strong opening reflected increased investor demand for bullion as concerns over the escalating conflict between the United States and Iran prompted traders to move away from riskier assets.
The rally in gold and silver prices follows a sharp rise in global uncertainty after fresh military developments in the Middle East. As geopolitical risks intensified, investors sought the relative safety of precious metals, traditionally viewed as reliable investments during periods of economic and political instability.
Internationally, spot gold also traded higher, supported by a softer US dollar. A weaker greenback makes gold more affordable for buyers using other currencies, often boosting global demand. Market participants are also closely tracking US economic data and comments from the Federal Reserve for clues on future interest rate decisions, which could influence the direction of bullion prices.
Silver, often considered both a precious and industrial metal, outperformed gold during the session. Apart from safe-haven buying, expectations of steady industrial demand also supported silver prices today, helping the metal post stronger gains than gold.
In the domestic bullion market, gold prices remained elevated across major cities on Monday. Delhi recorded 24-carat gold at ₹1,43,460 per 10 grams, while 22-carat gold was priced at ₹1,31,500 per 10 grams. Similar price levels were reported in Mumbai, Kolkata, Chennai, Bengaluru and Hyderabad, with slight variations depending on local taxes, making charges and jewellers’ pricing. Despite the rally, many buyers continued to adopt a wait-and-watch approach, hoping for some stability in prices before making fresh purchases.
Jewellers said buying activity remained mixed despite the rally. While investment demand continued to improve as consumers looked for safe assets, retail jewellery purchases stayed relatively subdued because of elevated prices. Many buyers are waiting for prices to stabilise before making large purchases.
Market analysts believe the outlook for gold prices remains positive as long as geopolitical tensions persist. Any further escalation in the Middle East or signs of slower global economic growth could strengthen demand for safe-haven assets, providing additional support to bullion prices.
Apart from geopolitical developments, investors are also monitoring inflation trends and central bank policies. If the US Federal Reserve signals interest rate cuts later this year, gold could receive another boost, as lower interest rates generally reduce the opportunity cost of holding non-yielding assets like bullion.
The movement in the US dollar index, global bond yields and crude oil prices will also play an important role in determining the near-term direction of MCX gold and MCX silver. A stronger dollar or higher bond yields could limit gains, while continued uncertainty may keep precious metals well supported.
For Indian investors, the rise in gold rates today reflects a combination of stronger international prices and fluctuations in the rupee. Since India imports most of its gold, any movement in global prices or the domestic currency directly impacts retail bullion rates.
Experts advise investors to remain cautious amid heightened market volatility. While gold continues to serve as a hedge against inflation and geopolitical risks, short-term price swings are likely as markets react to global developments. Those looking to invest are encouraged to adopt a staggered approach rather than making large one-time purchases.
With geopolitical tensions showing little sign of easing and global markets remaining volatile, gold prices today, silver prices today, MCX gold, MCX silver and international bullion markets are expected to remain in focus. Investors will closely watch developments in the Middle East, US economic data and central bank commentary for fresh cues on the next move in precious metals.
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