Silver surges, Gold rebounds on safe-haven demand

Precious metals staged a strong recovery in the national capital on Tuesday, driven by renewed safe-haven demand amid ongoing geopolitical tensions. According to the All India Sarafa Association, silver prices jumped sharply while gold also reversed its recent losses.

Silver surged by Rs 6,000, or 2.34 per cent, to Rs 2,62,500 per kilogram (inclusive of all taxes). Gold of 99.9 per cent purity rose by Rs 1,050, nearly 1 per cent, to Rs 1,61,300 per 10 grams, snapping a three-day declining trend.

Market analysts attributed the rebound to heightened global uncertainty, which typically boosts demand for safe-haven assets like gold and silver. Despite subdued global cues, domestic factors such as a weakening rupee supported local bullion prices, helping them remain resilient against international softness.

Experts noted that the bullion market is currently navigating a complex macroeconomic environment. Escalating tensions in the Gulf region have triggered concerns over rising crude oil prices, which in turn are fuelling inflation fears. This situation could prompt central banks to maintain a hawkish stance for a longer period, limiting sharp gains in precious metals.

In the international market, however, prices showed slight कमजोरी. Spot gold was trading marginally lower at USD 5,003.68 per ounce, while silver dipped 0.35 per cent to USD 80.46 per ounce.

Analysts said bullion is likely to remain range-bound in the near term as investors await clarity from the US Federal Reserve’s policy decision. Expectations of delayed rate cuts due to elevated energy prices may cap further upside in gold, even as geopolitical risks continue to lend support.

Investors are closely watching the outcome of the Federal Open Market Committee meeting for fresh cues on interest rates and future price trends in the bullion market.