Gold and silver prices shot up sharply on Monday as rising tensions between Iran and the US unsettled global markets. Investors rushed towards safe-haven assets, pushing bullion prices significantly higher on the Multi Commodity Exchange (MCX).
At 11:45am, MCX Gold was trading at Rs 1,67,601, up by Rs 5,497 or 3.39%, Silver saw an even sharper move, climbing Rs 9,806 to trade at Rs 2,92,450, up 3.47%.
The sudden spike reflects growing nervousness across financial markets as geopolitical risks intensify in the Middle East.
WHY ARE GOLD AND SILVER RISING?
Whenever there is fear or uncertainty in global markets, investors tend to move money into assets considered safer. Gold has traditionally been seen as a store of value during crises. Silver, though more volatile, often follows gold’s direction.
Apart from geopolitical concerns, inflation worries, steady central bank buying and expectations of easier US monetary policy have also supported bullion prices.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said volatility is likely to remain high.
“Gold and silver prices are set to remain highly volatile with gap up on the opening session tomorrow as the Middle East conflict involving renewed US and Israeli military action against Iran continues to dominate global risk sentiment. A sharp escalation in hostilities, with coordinated strikes and retaliatory moves fueling uncertainty and diminishing hopes of a quick diplomatic resolution. This elevated geopolitical risk can drive investors toward traditional safe-haven assets like gold and silver, and widely expecting a gap-up opening for bullion markets.”
He added that as global equities come under pressure, money naturally shifts into precious metals, which act as a hedge against uncertainty. Rising crude oil prices, especially due to fears of disruption through the Strait of Hormuz, are also adding to risk-off sentiment.
However, he cautioned, “If over the weekend there are diplomatic developments or indications of de-escalation, precious metals could see profit-taking after an initial spike of 3–6%.”
KEY LEVELS TO WATCH
Market experts say gold is currently trading within a defined range after correcting from earlier record highs.
Ponmudi R, CEO of Enrich Money, explained the current technical picture, “MCX Gold futures are trading in the 1,65,000–1,70,000 range after consolidating post the sharp correction from all-time highs near 1,80,000–1,81,000. While price currently in short-term consolidation with a positive tilt, holding firm above critical support zones.”
He pointed out that strong buying interest has been seen in the Rs 1,58,000–Rs 1,62,000 zone. “A sustained hold above this base, followed by a breakout above 1,65,000, may revive momentum toward 1,70,000–1,75,000, preserving a bullish medium-term perspective.”
On silver, he said, “MCX Silver futures are trading around 2,75,000–3,00,000 following gap up. The long-term bullish framework remains firmly intact, supported by favourable global cues amid heightened geopolitical tensions.”
He added that key support lies between Rs 2,50,000 and Rs 2,70,000, and holding above this region could push prices towards Rs 3,20,000–Rs 3,30,000. But a decisive fall below these levels may accelerate downside pressure.
WHAT SHOULD INVESTORS DO NOW?
For retail investors, this is not the time to panic or chase prices blindly.
If you already hold gold or silver, experts suggest staying calm and reviewing your asset allocation rather than reacting emotionally to headlines. Precious metals are typically meant for portfolio stability, not short-term trading gains.
Those looking to invest should avoid lump-sum buying after a sharp spike. Instead, staggered buying on dips may be more sensible. Volatility is likely to remain high, especially with geopolitical headlines driving daily movements.
It is also important to remember that prices can correct quickly if diplomatic efforts reduce tensions. In such a scenario, short-term traders could see profit booking.
In uncertain times, gold and silver can act as a cushion, but discipline and patience remain key.
