The shadow of war in the Middle East cast a bullish glow over India’s precious metals market Wednesday, with MCX gold climbing 1% and silver exploding 2.5% higher in early trade. Stock benchmarks slid as the Iran-Israel-American imbroglio deepened, channeling capital into bullion.
April gold futures advanced 1.44% (2,324 rupees) to 1,63,432 rupees/10g, rebounding from a 3% drubbing to 1,61,108 rupees prior. May silver futures leaped 2.65% (7,021 rupees) to 2,72,339 rupees/kg, recovering from a 5% slump to 2,65,318. A fortified dollar at 99.33 and 10-year U.S. yields over 4% had sparked the prior retreat, but safe-haven flows prevailed today.
Inflation risks loom large from spiking energy costs, pressuring the Fed amid unrelenting hostilities. Post-Khamenei assassination, Iran’s missile campaign rolls on against Israeli retaliation in Tehran and Beirut. Trump forecasts a 4-5 week war, extendable as needed.
Trading wisdom from pros: Hold off on fresh bets. Gold’s floor at 1,59,100-1,57,700 rupees, ceiling 1,63,500-1,65,800. Silver base 2,57,700-2,51,500, top 2,71,000-2,78,800. The bigger picture? Bullish trajectory endures.
In an era of flashpoints, gold and silver’s allure as stabilizers endures. This rally signals investor prudence, but patience rules until the fog of war lifts. Markets will track every salvo for cues on the next move.