Gold prices continued their upward trend for the fifth consecutive session in global markets on Tuesday. This surge was fueled by escalating conflicts in the Middle East and a notable increase in energy prices. In India, MCX gold April futures saw a rise of 2.53% to reach Rs 1,66,199 per 10 grams on Monday, while MCX silver May futures experienced a slight decline of 0.90% to Rs 2,80,090 per kg.
India’s Multi Commodity Exchange observed a closure for the first half of trading on Tuesday due to the Holi festival, with evening trading resuming at 5 pm. The tensions in West Asia have led investors to seek safe-haven assets, raising concerns about inflation in the US and the possibility of the Federal Reserve maintaining interest rates at their current levels for an extended period.
Spot gold prices rose by 0.8% to $5,360 per ounce, while US gold futures increased by approximately 1% and spot silver prices also saw a rise of about 1.9% to $91.11 per ounce. The surge in the dollar index to 98.57, up by 0.19%, has made gold more expensive for buyers using foreign currencies, thereby limiting further gains in the precious metal.
US President Donald Trump has stated that the military campaign against Iran will persist as long as necessary. Reports indicate that Tehran targeted oil and gas infrastructure in Saudi Arabia and issued threats to shipping in the vital Strait of Hormuz. Additionally, Israel has declared a series of strikes aimed at Iran’s command centers.
Iran’s retaliatory actions on oil and gas facilities have heightened concerns about supply disruptions, leading to an increase in oil prices and inflation fears. US crude futures climbed by 1.4% to $72.23, while Brent crude also rose by 1.87% to trade at $79.2 per barrel in the early session on Tuesday. Investors are closely monitoring key indicators such as US Manufacturing and Non-Manufacturing PMI, ADP Non-Farm Employment Change, and Unemployment data to gauge the possible direction of Federal Reserve policies.
Gold has shown a significant rally of nearly 25% in 2026 following a 64% increase last year. This surge can be attributed to strong central bank purchases, inflows into exchange-traded funds, and concerns regarding the independence of the US Federal Reserve.
