Gold and silver prices rose on Wednesday morning, following an increase in global markets after the United States and Iran declared a ceasefire, reducing immediate geopolitical tensions. The surge in precious metals aligns with a broader upswing in equities and a significant drop in crude oil prices as investors adapt to evolving risk conditions.
Domestically, on the Multi Commodity Exchange (MCX), gold prices were at Rs 1,53,396 per 10 grams around 9:55 am, marking a gain of Rs 3,107 or 2.07%. Meanwhile, silver experienced a more substantial increase, reaching Rs 2,43,200 per kg, up by Rs 11,852 or 5.12%.
Market data indicated a rise in gold positions and short covering in silver, signaling renewed buying interest and the closure of previous bearish positions. Internationally, gold and silver prices also surged as investors responded to the ceasefire announcement and changing perceptions of risk and inflation.
While a reduction in tensions typically diminishes the demand for safe-haven assets like gold, the notable decline in crude oil prices and currency fluctuations have bolstered precious metals. Additionally, investors are repositioning themselves ahead of crucial central bank decisions, including the Reserve Bank of India’s policy announcement later in the day.
Although the ceasefire has provided temporary relief to global markets, volatility may persist as investors monitor further developments. Precious metals are expected to remain responsive to fluctuations in crude oil prices, currency changes, and signals from central banks in the short term.