In a textbook flight to quality, precious metals dominated headlines as Middle East hostilities intensified. Monday’s MCX session saw gold and silver prices vault over 3%, propelled by US-Israel’s coordinated strikes on Iran and the ensuing tit-for-tat missile exchanges.
Spotlighting the action: April gold futures peaked at 1,67,915 rupees per 10 grams after a 3%-plus surge; March silver topped out at 2,85,978 rupees/kg. Latest quotes near 10:46 AM showed gold at 1,66,716 rupees (2.85% or 4,612 rupees up) for April 2 expiry, silver at 2,82,309 rupees/kg (2.66% or 7,311 rupees gain) for March 5.
Israel’s targeting of Tehran’s nerve centers prompted Iranian retaliation against Israeli soil and American assets in the Gulf. Sunday’s operations reportedly felled Iran’s top leader, Ayatollah Ali Khamenei, stoking visions of widespread war and Hormuz Strait oil snarls.
Risk-off sentiment reigned, boosting safe havens. Motilal Oswal analyst Manav Modi highlighted gold’s continuity from prior gains, exacerbated by Trump tariff ambiguities. Dollar strength (index +0.24% to 97.85) offered mild resistance.
Crude leaped 7%+ on blockade fears. Traders brace for manufacturing PMIs and US employment stats.
Contextualizing the move: Gold’s 64% 2025 ascent rode central bank hoarding, ETF fervor, and US policy thaw hopes. Bullish projections persist—JPMorgan at $6,300/oz end-2026, Bank of America at $6,000/oz—portending more upside amid volatility.