Gold and silver prices traded with extended gains in Monday’s session, as escalating tensions in the Middle East boosted the appeal of safe-haven assets, bringing the yellow metal within sight of its recent record highs.
Gold, often deemed a safe-haven asset by investors during times of crisis, rose $187 per troy ounce (Comex) to $5,434 per ounce on 2 March. Gold has closed the last seven months higher, rallying from $3,307 per troy ounce to $5,247, reflecting an increase of 59%.
With today’s rally, the yellow metal is just 4% away from touching the recent peak of $5,626.
The March silver futures contract on Comex gained $4 per troy ounce to reach the day’s high of $97.3, the highest level in five weeks. Over the past four weeks, silver has gained 20%, and over the last 10 months, it has surged 184%.
Middle East tensions escalate
The US and Israel attacked Iran over the weekend, reportedly killing Iran’s Supreme Leader and several other military officials, reflecting another full-blown war in the region.
The attacks came just a day after the US and Iran held their third round of nuclear talks, which did not lead to a breakthrough. US President Donald Trump had earlier warned that “bad things” would happen if Iran did not agree to a deal over the future of its nuclear programme.
The latest strikes opened a stunning new chapter in US intervention in Iran, marking the second time in eight months that the Trump administration has attacked the country. Latest reports suggest that Saudi Aramco halted operations at the Ras Tanura refinery in Saudi Arabia after a drone strike in the area.
Hours after the attack, Iran retaliated by targeting US military installations around the Gulf, with the conflict now entering its third day.
Meanwhile, Trump said Iran’s new leadership was looking to resume negotiations, but Iran’s security chief, Ali Larijani, reportedly said Tehran had no plans to engage in talks with the US, indicating that tensions in the region are likely to continue.
Earlier, Trump also said the conflict could stretch on for another four weeks, according to media reports.
MCX gold rises over ₹7,700 per 10g; silver nears ₹3 lakh per kg
In the domestic market, the April gold futures contract on MCX gained ₹7,776 per 10 grams to reach the day’s high of ₹1,69,880. From the February low, gold has regained ₹33,695, slowly marching towards its record high of ₹1,80,779.
Meanwhile, the March silver futures contract gained even more sharply, rising by ₹15,155 per kilogram to touch the day’s high of ₹2,97,799, the highest level since late January.
After facing a historic sell-off in late January, the ₹71,994 from recent lows”>white metal staged a strong comeback, recovering ₹71,994 from recent lows, though prices are still far from the historic peak of ₹4,20,048.
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