- Precious metals rose on MCX due to US-Iran tensions and a weaker dollar on Monday
- MCX gold April futures gained Rs 3,700 to Rs 1,60,600 per 10 grams
- MCX silver March futures surged Rs 15,200 to Rs 2,68,120 per kilogram
Precious metals extended their gains on the Multi Commodity Exchange (MCX) on Monday, as escalating tensions between the US and Iran and a sharp decline in the dollar boosted safe-haven demand.
MCX gold April futures rose more than Rs 3,700, or about 2.4%, to Rs 1,60,600 per 10 grams. Silver outperformed, with MCX March futures climbing nearly Rs 15,200, or 6%, to Rs 2,68,120 per kilogram, marking one of the strongest single-day advances in recent months.
The dollar index slipped 0.45% to 97.36, making dollar-denominated bullion more attractive for overseas buyers. A softer greenback typically supports gold and silver prices by lowering the effective cost for holders of other currencies, prompting fresh buying interest.
Geopolitical Tensions Fuel Demand
The rally was underpinned by rising geopolitical uncertainty. US President Donald Trump issued a fresh ultimatum to Iran, stating that the coming days would be critical in determining whether a meaningful nuclear agreement could be reached. Meanwhile, reports of student protests across Iranian universities added to concerns over regional instability.
Markets are closely tracking developments in the Middle East, as heightened tensions often drive investors toward assets perceived as stores of value, such as gold and silver.
Trade and Growth Concerns
Investor sentiment was further unsettled after the US Supreme Court struck down certain tariffs imposed under emergency powers, prompting President Trump to announce a new 15% tariff on US trading partners. The evolving trade policy outlook has revived concerns about global economic stability.
At the same time, US economic data signalled a slowdown. The world's largest economy expanded at a 1.4% annualised pace in the fourth quarter, sharply lower than growth rates seen in previous quarters. Slower growth, combined with policy uncertainty, has reinforced gold's appeal as a hedge against macroeconomic risks.
Globally, gold prices have also resumed their upward trajectory after recovering from an early-month correction. With geopolitical risks, currency volatility and growth concerns converging, bullion continues to attract investor interest, while silver's sharper gains highlight strong momentum across the precious metals complex.
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