Gold and silver prices saw an increase on Tuesday, in line with the positive movement in global bullion markets. This rise was attributed to a combination of lower crude oil prices and ongoing geopolitical tensions in the Middle East, which led to a higher demand for safe-haven assets. On the Multi Commodity Exchange (MCX), gold futures for August delivery surged by 1.03%, reaching an intraday high of Rs 1,42,848 per 10 grams at around 11:20 am. Similarly, silver futures for September delivery also climbed by 1.54% to touch an intraday high of Rs 2,21,780 per kg.
The current trading prices showed gold at Rs 1,42,741, up by Rs 1,353 or 0.96% from its intraday low of Rs 1,42,157. Conversely, silver was trading at Rs 2,21,402, reflecting a gain of Rs 3,002 or 1.37% after hitting a session low of Rs 2,19,200. Earlier in the day, gold and silver had opened at Rs 1,42,386 per 10 grams and Rs 2,19,200 per kg, respectively, on the commodity exchange.
The surge in domestic bullion rates mirrored the global trend, as Brent crude oil prices dipped below $90 per barrel amidst reports of diplomatic efforts to ease tensions in the Middle East. This decline in oil prices also impacted international gold prices positively, especially after reports of the US halting its recent airstrikes against Iran. The fluctuation in bullion prices has been notable, with investors closely monitoring geopolitical risks alongside speculations on the interest rate trajectory of the US Federal Reserve.
Market experts highlighted that higher interest rates typically diminish the attractiveness of non-yielding assets like gold by increasing the cost of holding them. Despite this, the persistent geopolitical uncertainties have continued to drive up the demand for safe-haven assets, counterbalancing any downward pressure from a stronger US dollar.
