Gold and silver prices soared to fresh all-time highs in India on Tuesday, driven by strong trends in international markets and escalating geopolitical tensions in the Middle East. In New Delhi, gold prices jumped by Rs 700 to reach a record high of Rs 73,750 per 10 grams, according to HDFC Securities. Silver prices also climbed, surging by Rs 800 to an unprecedented Rs 86,500 per kilogram.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, attributed the surge in gold prices to positive cues from global markets. On the international stage, spot gold on the Comex rose by USD 15 to USD 2,370 per ounce, reflecting increased demand for safe-haven assets amid the escalating conflict between Israel and Iran.
Silver prices also experienced gains in the international market, with spot silver trading at USD 28.40 per ounce. Investors remain vigilant as they await comments from US Federal Reserve Chair Jerome Powell, which may shed light on future monetary policy, particularly following the release of higher-than-expected inflation data last week.
In futures trading on the Multi Commodity Exchange (MCX), the June gold contract rose by Rs 349 (0.48%) to Rs 72,626 per 10 grams. The August gold contract also traded higher at Rs 72,800 per 10 grams, while the May silver contract dipped by Rs 314 (0.37%) to Rs 83,537 per kilogram.
Praveen Singh, Associate VP of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, suggested that elevated US Treasury yields and a strong dollar may limit further gains in precious metal prices. Despite this, Jateen Trivedi, VP Research Analyst in Commodity and Currency at LKP Securities, anticipates that bullish sentiment for gold will persist as long as geopolitical tensions remain high.
Sources: moneycontrol.com
