Editor’s Note
This article highlights the recent surge in domestic gold and silver prices, driven by international market rallies, a weaker dollar, and geopolitical tensions. We present this market update for our readers’ information.
Following a rally in international markets, a sharp surge in gold and silver prices is now being witnessed in the domestic commodity market as well. On the morning of Monday, 23rd February, both precious metals surprised investors. While gold rose by nearly 2 percent, silver prices recorded an increase of approximately ₹16,000 per kilogram. Weakness in the dollar and escalating tensions between the US and Iran are considered major reasons for this rally.
On the Multi Commodity Exchange (MCX), gold for April delivery rose by ₹3,700, or 2.4 percent, to reach ₹1,60,600 per 10 grams. Meanwhile, silver for March delivery recorded an increase of over 6 percent. The price of silver increased by ₹15,931 to reach a level of ₹2,68,875 per kilogram. This sharp rally has attracted the attention of both traders and investors.
Strength was also seen in precious metals in foreign markets. Gold rose by 2.03 percent to reach a level of $5,184.10 per ounce. Similarly, spot silver was seen trading at $87.210 per ounce with a gain of 5.91 percent. This strength at the international level became a primary reason for the rise in domestic prices.
Harish V, Head of Commodity Research at Geojit Investments Ltd., says that changing expectations regarding a strong dollar and interest rates could limit price gains in the coming days. However, if global tensions persist, investors will continue to turn towards safe investment options, which will continue to support gold and silver.
In recent days, rhetoric between the US and Iran has intensified. US President Donald Trump has issued a stern warning to Iran for an agreement and said that the next 10 to 15 days will be extremely important. If no agreement is reached, serious consequences could follow. Meanwhile, news of student protests at several universities in Iran has also emerged. This entire series of events has increased uncertainty in the global market.
Last week, the US Supreme Court declared tariffs imposed under the International Emergency Economic Powers Act illegal. The decision was delivered by a majority of three judges against six. However, immediately after this, President Trump imposed a new 15 percent tariff on all of America’s trading partner countries. This move created a state of confusion regarding global trade, which impacted financial markets and investors leaned towards safe options.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, last week saw strength in gold and silver with considerable volatility. Factors such as US-Iran tensions, uncertainty related to tariffs, and the reopening of Chinese markets could also influence prices this week. He believes that due to fluctuations in the dollar index and global events, sharp movements may be seen in the market this week as well.
Market experts say that the current rally in precious metals is due to global reasons, so caution is necessary before investing. Price fluctuations may continue in the future as well. In such a situation, it would be better to consult a certified financial advisor before making any investment decision.