Gold and silver prices rallied sharply as escalating tensions in the Middle East fuelled market uncertainty, prompting investors to move toward traditional safe-haven assets. On the global front, COMEX gold climbed to $5,400 per ounce, registering an intraday gain of more than 2.5%. COMEX silver also opened with a strong upside gap, hitting an intraday high of $96.930 per ounce and rising nearly 2% within minutes of the opening bell.
Tracking the global momentum, domestic bullion markets opened significantly higher. MCX gold began the session at ₹1,65,501 per 10 grams and surged to an intraday high of ₹1,67,915 per 10 grams, a jump of over ₹5,500 within minutes of trade. Similarly, MCX silver opened on a firm note at ₹2,78,644 per kg and climbed to ₹2,85,978 per kg, marking an intraday gain of around 3.75%.
Meanwhile, diplomatic engagement between Washington and Tehran is set to continue next week. Oman, which is mediating the talks, described the latest round as showing “significant progress,” according to Bloomberg. However, a source familiar with the discussions indicated that US officials remain dissatisfied with the pace of advancement.
Although MCX and COMEX remain closed on Sunday, physical gold prices in key Indian cities such as Delhi and Mumbai are expected to remain elevated amid the ongoing US-Israel-Iran tensions.
Will Gold Hit ₹2 Lakh?
Market experts believe that heightened geopolitical risks could accelerate the rally in precious metals. Hareesh V, Head of Commodity Research at Geojit Investments, told media that in an extreme scenario, gold could potentially test $6,000 globally or ₹2,00,000 in the domestic market. However, he noted that future price movement will largely depend on how the geopolitical situation unfolds.
Analysts also indicated that silver could cross the $100 mark if tensions intensify further.
So far this year, gold has surged more than 20%, reclaiming levels above $5,000 per ounce after correcting from its record peak in late January. The metal has now logged its seventh straight monthly gain, its longest winning streak since 1973.
Persistent geopolitical and trade tensions, concerns over currency stability, and debates surrounding the Federal Reserve’s independence have all supported the ongoing multi-year rally, Bloomberg reported.
