Kamal Ghorui
Gold and silver metals inched higher on Monday, on the back of strong safe-haven demand from investors amid ongoing geopolitical tensions intensifying in the Middle East. The yellow metal rose by Rs 7,000 per 10 grams to Rs 1.66 lakh while silver inched to Rs 2.86 lakh, recording a gain of Rs 20,000 per kg. “If the West Asian conflict continues, the risk premium for investors would increase, pushing gold prices in India to new records,” Aksha Kamboj, vice president at India Bullion & Jewellers Association (IBJA) told ET. The expert added, “Gold has traditionally been a safe-haven asset for investors, and the sustained demand for gold could boost prices to new highs.”
Commenting on further upside for the precious metals, Kamboj said, “the extent of the rally would depend on the outcome of the conflict, the monetary policy stance, and the currency value…while prices could surge in the short term, investors should keep a check on the overall scenario.”However, according to Renisha Chainani, head of research at Augmont Gold, despite soaring prices, investors are maintaining their positions in both metals and are using price dips as opportunities to accumulate. The rise in gold and silver prices are accompanied by growing concerns over crude oil. Since the joint Israeli and US military strikes on Iran on February 28, followed by Iran’s retaliatory actions against Gulf nations, crude oil prices have climbed, creating added pressure for India, which is heavily reliant on Middle Eastern oil imports.Since January, gold has already gained 24%, while silver has surged 30%. These impressive rallies come on the top of even larger gains of 70% for gold and 125% for silver recorded earlier in the calendar year 2025.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
