Gold and silver prices are gearing up to reach their January highs, bolstered by recent geopolitical events as Iran, and Israel and the US on the other side, exchange missile attacks.
Reports, citing strategic analysts, pinned the focus on Iran’s nuclear programme, with both US and Israeli leaders confronting Iran’s expanding military and nuclear capabilities, which boosted the risk premium in precious metals.
According to Vandana Bharti, AVP, commodity research at SMC Global Securities, MCX futures gold can touch ₹1.70 lakh per 10 grams of 24-carat purity, and silver at ₹3 lakh in the short term.
On Comex, spot silver was up 7.85 per cent to 93.82 per ounce, and gold at $5,296 per ounce.
Bharti reasons that gold tends to rise quickly as it is seen as a store of value when the world feels unstable. Silver follows, though its moves can be a bit more volatile because it has both investment and industrial demand
“In the short term, prices often spike as headlines break and traders rush to hedge risk. Over time, however, markets settle, and prices may pull back if tensions ease. So the impact is often sharp and emotional at first, driven by fear and protection, before fundamentals and broader economic factors take back control,” said Bharti.
Market analysts in India are keeping a close watch on developments in West Asia.
“We would expect the ongoing rally in oil, gold and silver to extend. For India, the impact is typically magnified: higher crude oil prices widen the current account deficit, stoke domestic inflation, pressure the rupee, and could lead to FII outflows as global investors reduce risk exposure,” said Nachiketa Sawrikar, fund manager, Artha Bharat Global Multiplier Fund.
