Amid mounting geopolitical tensions and weakening dollar sentiment, gold and silver prices surged sharply in the domestic market on Wednesday. In Delhi’s bullion market, 24-carat gold jumped by ₹1,910 to reach ₹98,450 per 10 grams, while silver spiked by ₹1,660 to settle at ₹99,160 per kilogram.
Market analysts attribute this rally to growing global uncertainty, weakening U.S. fiscal health, and rising demand for safe-haven assets.
The surge is being driven by several global factors:
Geopolitical Tensions: Reports of potential Israeli strikes on Iranian nuclear facilities have heightened market fears.
U.S. Fiscal Concerns: Credit rating downgrades and increasing fiscal deficits in the U.S. are fueling fears of a looming financial crisis.
Weak Dollar: The dollar’s softness has made gold and silver more attractive for investors.
Chintan Mehta, CEO of Abans Financial Services, stated that growing sovereign risk in the U.S. is pushing investors toward safer alternatives like gold.
24-carat gold (99.9% purity) rose to ₹98,450/10g, up from ₹96,540 in the previous session.
22-carat gold (99.5% purity) also surged by ₹1,870 to ₹98,000/10g.
Silver climbed to ₹99,160/kg, from ₹97,500/kg a day earlier.
In international markets, spot gold was up $21.79 or 0.66% at $3,311.76 per ounce, crossing the crucial $3,300 mark.
Soumil Gandhi, Senior Analyst at HDFC Securities, said that fiscal uncertainty in the U.S. and growing geopolitical risks are key drivers.
Investor nervousness is also being driven by the uncertainty around former President Donald Trump’s tax reform policies and the upcoming elections. This has impacted the dollar’s strength and further boosted gold prices.
Kainaat Chainwala, AVP at Kotak Securities, emphasized that escalating tensions between Iran and Israel are also playing a major role in driving up gold prices.
Investors are closely watching the U.S. Federal Reserve’s upcoming speeches and policy cues, especially any hints about future interest rate decisions. These will be crucial in determining the future trajectory of gold and silver prices.
Given the current volatility, experts advise investors to stay informed and cautious. Precious metals may continue to experience price fluctuations in the near term, and only verified financial advice should guide investment decisions.
