Gold soars nearly 4% to ₹1.67 lakh/10 grams; global price hikes past $5,400 amid Middle-East tensions

At around 10:31 am, the yellow metal contract was trading ₹4,702 or 2.9% higher at ₹1,66,806 per 10 grams, mirroring a rise in global safe-haven prices amid the intensifying conflict in the Middle East.

In the international market, COMEX gold advanced as much as 3.08% to the session’s peak of $5,409.70 per troy ounce. At the time of writing, the futures contract was trading 2.18% higher at $5,362.30 per ounce.

Gold is a safe-haven asset, which means investors turn towards it when global dynamics are uncertain and volatile. The current rally comes in the face of escalating geopolitical tensions in the Middle East.

Similarly, silver futures for expiry in May rallied as much as ₹10,508 or 3.71% to the day’s high of ₹2,93,152 per kilogram on the MCX. The white metal contract stood at ₹2,89,598 per kilogram, reflecting a ₹6,954 or 2.46% jump.

On the MCX, silver futures for the March contract surged ₹22,054 or 8.72%, while gold for April contract rose ₹5,228, or 3.33%, over the past week.

Globally, COMEX silver jumped as much as 4.3% to an intraday high of $97.30 per ounce. It was trading at $93.91 per ounce, marking a 0.66% increase at the time of writing.

Over the weekend, the United States and Israel launched an attack on Iran, which led to the death of its Supreme Leader Ayatollah Ali Khamenei. In retaliation, Iran attacked US airbases across West Asia.

Israel launched a new wave of strikes on Tehran on Sunday, and Iran responded with more missile barrages.

Besides the escalating hostilities, this week investors will also focus on macroeconomic data announcements, including manufacturing/services PMI from across regions. The US retail sales and non-farm payroll and employment data is also set to be released toward the end of the week. Furthermore, key global macroeconomic data, including Eurozone inflation, unemployment data, and European Central Bank meeting will also guide global market sentiment.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22% higher at 97.78.

The domestic commodities market will remain closed on Tuesday due to Holi.