Gold and silver prices skyrocketed as investors flocked to safe-haven assets following US-Israel strikes in Iran, escalating geopolitical tensions and disrupting global markets.
Key Points Gold and silver prices experienced a significant surge in futures trading due to heightened geopolitical tensions. US and Israel launched coordinated military strikes on Iran, leading to retaliatory attacks and increased market uncertainty. Investors sought safe-haven assets, driving up demand for gold and silver. Geopolitical instability and disruptions in maritime traffic in the oil-rich Gulf contributed to the price surge. Gold recorded its seventh consecutive monthly gain in February, fueled by geopolitical tensions and central bank purchases.
Precious metal prices jumped 4 per cent in futures trade on Monday, with silver surging to Rs 2.93 lakh per kilogram and gold climbing to near Rs 1.68 lakh per 10 grams, tracking strong demand in the international markets.
Analysts said investors rushed to safe-haven assets after the US and Israel launched coordinated military strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei and triggering retaliatory attacks from Tehran across the Middle East.
On the Multi Commodity Exchange, silver futures for May delivery soared Rs 10,508, or 3.72 per cent, to Rs 2,93,152 per kg, while gold for the April contract jumped Rs 5,811, or 3.6 per cent, to Rs 1,67,915 per 10 grams.
Market Analysis of Precious Metal Surge
Rally in bullion futures accelerated in early morning trade, with prices jumping over 3 per cent after the US and Israel launched major strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei, marking an unprecedented escalation in the region, Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.
Globally, Comex silver futures for May delivery gained USD 4, or 4.3 per cent, to USD 97.30 per ounce, while gold rose USD 161.8, or 3.08 per cent, to USD 5,409.7 per ounce.
“Gold climbed above USD 5,400 per ounce, reaching an over one-month high as safe-haven demand intensified following joint strikes by the US and Israel on Iran over the weekend,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
He added that the attacks escalated regional instability and disrupted maritime traffic in the oil-rich Gulf.
Meanwhile, Iran responded with missile strikes targeting US assets across neighbouring countries, including the UAE, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.
Trivedi noted that gold logged its seventh straight monthly gain in February, the longest streak since 1973, driven by rising geopolitical tensions, strong central bank purchases, and investors moving away from sovereign bonds and currencies.
Modi of Motilal Oswal Financial Services said investors will now monitor key macroeconomic data, including manufacturing PMI releases from major economies later in the day, while the broader direction this week will hinge on US labour market data for cues on growth resilience and Federal Reserve policy expectations.
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