Geopolitical storm clouds gathered over global markets Thursday as President Trump’s ominous threats against Iran propelled gold and silver prices to unprecedented levels. Fearing a flare-up in the Middle East, investors piled into these timeless safe havens, shrugging off other asset classes.
The US leader demanded Iran resume nuclear talks, warning of harsher actions if rebuffed, while bolstering military presence in the region. This rhetoric, alongside a softer dollar and central bank hoarding, ignited a fierce rally in bullion.
MCX traders watched in awe as gold for February delivery vaulted Rs 11,575, or nearly 7%, to Rs 1,77,490 per 10 grams around noon. Silver for March followed suit, climbing Rs 23,633 (6.13%) to Rs 4,08,999 per kg. Spot silver internationally steadied near $120/oz, with yearly gains exceeding 60% on supply crunches.
Fed’s rate pause announcement sweetened the deal, promising ample liquidity and low yields that make gold irresistible. Market sages highlight how $5,600/oz resistance has morphed into a bedrock support, cementing the uptrend.
Compounding factors include US tariff battles with allies, potential fiscal shutdowns, and broader economic headwinds. Rising US debt burdens and dollar erosion point to prolonged bull runs. Experts advise viewing any pullbacks as golden buying opportunities in this fluid landscape.
In turbulent times, gold and silver emerge as anchors of stability, rewarding those who seek refuge from chaos.