Mumbai, March 2 (IANS). Due to the increasing tension in the Middle East and the joint military operation conducted by America and Israel on Iran, the demand for safe investments has strengthened, due to which a big jump was seen in precious metals on Monday. During this period, an increase of more than 3 percent was recorded in the prices of gold and silver.
On MCX, April futures gold rose by more than 3 percent in intraday trade to reach the day’s high of Rs 1,67,915 per 10 grams. At the same time, March futures silver also increased by more than 3 percent to Rs 2,85,978 per kg, which was the highest level of the day.
However, till the time of writing the news (around 10.46 am), gold with April 2 expiry was trading at Rs 1,66,716 per 10 grams with a rise of Rs 4,612 i.e. 2.85 percent on MCX, while silver with March 5 expiry was trading at Rs 2,82,309 per kg with a rise of 2.66 percent i.e. Rs 7,311.
Israel’s attacks on Tehran targeting command centers and air defenses were followed by retaliatory missile attacks on Israeli territory and US bases in the Gulf, further increasing uncertainty.
Tension in the region increased after the death of Iran’s supreme leader Ayatollah Ali Khamenei in joint attacks by America and Israel on Sunday. Fears of a broader regional conflict sent markets into a risk-off mode and concerns about a disruption in crude oil supplies through the Strait of Hormuz led to a sharp surge in demand for safe haven investments.
“Gold extended last week’s gains amid the US-Iran war. Also, uncertainty over US President Donald Trump’s tariff policy has also increased global economic risks,” said Manav Modi, commodity analyst at Motilal Oswal Financial Services Ltd.
The dollar index rose 0.24 per cent to 97.85, making dollar-denominated gold costlier for investors buying in foreign currencies and capping some gains in the yellow metal.
Crude oil prices also jumped more than 7 percent as the market fears the US-Iran war could cause major disruption to regional supplies.
Investors are now keeping an eye on key manufacturing PMI data releases from major economies, while the market direction this week will depend on US labor market data.
The recent rally comes after a 64 percent rise in gold prices by 2025. The surge has been driven by strong buying by central banks, heavy investment in exchange-based funds and expectations of easing monetary policy in the US.
JPMorgan estimates that gold could reach $6,300 an ounce by the end of 2026, while Bank of America has predicted the price to reach $6,000 an ounce.
–IANS
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