Gold prices rose by more than 4 per cent, reaching ₹1,69,000, while silver gained Rs 20,000 per kg on Monday amid ongoing geopolitical tensions in the Middle East. If the war between Iran and Israel continues, the premium for investors is likely to grow further, pushing prices to record levels in the country.
Precious metal prices have been steadily rising since US president Donald Trump triggered uncertainty in global markets with back-to-back tariff announcements in 2025.
Since June last year, the rally in gold and silver, along with other key metals and rare earth minerals, has forced investors to switch towards safe-haven options. Prices had fluctuated earlier when Russia sold a portion of its gold reserves to fund the war in Ukraine, but the prices have since not come down and stayed beyond $5000 per ounce.
Meanwhile, China, which maintains one of the world’s largest reserves, has been on a buying spree over the past two years. The Chinese government has sold assets worth billions of dollars while investing the same funds in the procurement of gold and silver.
According to market experts, if the ongoing tensions in the Middle East persist, prices may surge further. However, the prices might decrease depending on the time two sides take to reach a negotiated settlement to end the hostilities.
Brent crude oil prices jumped over 13 per cent since Sunday, crossing the $100-per-barrel mark for the first time in a year. Stock market volatility on Monday renewed fears of further losses among investors after both the Sensex and Nifty witnessed a steep slide. Reliance Industries Limited was among the major losers on Monday after Iran shut down the Strait of Hormuz.
Also read: Middle East crisis triggers 20-25 per cent travel cancellations
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