Gold and Silver Prices Rise Due to Middle East Tensions

Gold and silver prices are climbing again. This time, it’s due to growing tensions between Israel and Iran.

Recent Price Changes

On Friday, the price of gold for August delivery on the MCX jumped by Rs 2,011. That’s a 2.04% increase, bringing it to Rs 1,00,403 per 10 grams. People are buying gold as a safe investment, and the dollar is getting weaker.

Silver prices are also going up. July futures for silver started trading at Rs 1,06,695 per kg. That’s an increase of Rs 810, or 0.76%.

The day before, both gold and silver had a good day. They closed higher in both domestic and international markets. Gold August futures ended at Rs 98,392 per 10 grams, up 1.75%. Silver July futures finished at Rs 1,05,885 per kg, up 0.47%.

Why Are Gold and Silver Prices Rising?

Several factors are pushing gold and silver prices higher:

• Tensions in the Middle East between Israel and Iran are getting worse.
• People worldwide are buying more gold as a safe investment, driving international prices above $3,400 per troy ounce.
• In India, gold futures have reached a new high, exceeding Rs 1 lakh per 10 grams.
• The dollar is getting weaker, which helps make precious metals more valuable. The US Dollar Index (DXY) is at 98.23, down 0.31 or 0.32%.

Middle East Tensions

The situation in the Middle East is worrying. There could be disruptions to global oil supplies, affecting important routes like the Strait of Hormuz.

Israel has confirmed air strikes on Iran. These attacks aim to weaken Iran’s nuclear and missile programs.

Economic Indicators

In the US, the Producer Price Index and Core PPI numbers suggest that inflation is slowing down. This could lead the Federal Reserve to cut interest rates. Also, more people are claiming unemployment benefits, which has helped push precious metal prices up.

Gold prices have hit a 6-week high. If prices stay above $3,400, we might see further increases in the next session.

Experts think gold and silver prices will stay unpredictable. This is due to changes in the dollar and ongoing tensions in the Middle East. Gold prices could stay above $3,330 per troy ounce, and silver prices could hold above $35.00 per troy ounce.

Expert Opinions

Renisha Chainani, Head of Research at Augmont, says gold will likely stay strong unless there’s a sudden change in global risk sentiment or aggressive monetary tightening. It could even head towards Rs 1,05,000 in the medium term.

Manav Modi, Senior Analyst at Motilal Oswal Financial Services, says gold has grown remarkably. It’s up over 30% since the start of the year, despite some price changes.

These price changes are due to several factors. These include President Trump’s tariff changes, international political tensions, and concerns about global economic growth. Even with the changes in US-China tariffs, ongoing market uncertainty and weak US economic indicators continue to push gold prices up.

In the long term, Modi sees strong support levels between Rs 88,000-90,000 per 10 grams. He suggests buying gold when prices drop. He forecasts gold prices could reach Rs 1,00,000-1,06,000 over the next 12-15 months, as long as key support levels hold steady.