Gold and silver futures traded higher on the Multi Commodity Exchange on Monday as geopolitical tensions boosted demand for safe-haven assets. Gold added ₹522 per 10 grams, while silver futures rose significantly by over ₹3,100 per kilogram, mirroring positive trends in international markets like Comex.
Precious metals saw a sharp increase in domestic trading on Monday, as investors turned to gold and silver amid rising geopolitical tensions. The August gold contract on the Multi Commodity Exchange (MCX) climbed to trade at ₹1,41,428 per 10 grams, reflecting a gain of ₹522 for the session. The contract earlier hit a high of ₹1,41,649, showing sustained interest from market participants looking to hedge against uncertainty.
Silver futures displayed an even more pronounced upward movement. The September contract on the MCX opened at ₹2,19,199 per kilogram and traded higher at ₹2,19,950, a rise of ₹3,147 from the previous close. The metal reached an intraday high of ₹2,20,408, signaling strong momentum in the commodity markets.
International Market Context and Safe-Haven Demand
The domestic price action follows a similar trend in global markets. On the Comex exchange, gold futures recovered from early volatility to trade at $4,029.30 per ounce, up $10.50. Silver on the same platform saw a more significant gain, rising $1.15 to trade at $57.48 per ounce.
Historically, gold and silver are considered safe-haven assets, meaning their demand often increases when global instability rises. When geopolitical risks or economic uncertainties escalate, investors frequently reallocate capital from riskier assets into precious metals to preserve value. This behavior creates a direct link between global news headlines and domestic commodity prices.
Investors should note that commodity prices are highly sensitive to global news and central bank policies. While geopolitical tension currently acts as a supporting factor for these prices, any de-escalation in global conflicts or changes in interest rate expectations could lead to price corrections. For those tracking these movements, the key monitorables include international price trends on Comex and any major shifts in global geopolitical developments that could influence investor sentiment in the coming days.