Gold prices continued their upward trajectory for the third straight day, reaching Rs 1.65 lakh per 10 grams on Thursday, driven by persistent geopolitical tensions in West Asia and global inflation worries. Meanwhile, silver staged a strong recovery, surging Rs 5,000 in trade.
Gold Extends Rally Amid Geopolitical and Inflation Fears
Bullion markets witnessed sustained buying interest as investors sought safe-haven assets amid escalating conflicts in West Asia. The ongoing instability in the region has kept risk appetite subdued, pushing capital towards precious metals. Additionally, concerns over rising inflation across major economies further supported gold's appeal, even as US Treasury bond yields remained firm.
Market analysts noted that the metal's rally reflects a cautious sentiment among traders who are hedging against potential economic disruptions. The consistent rise in gold prices over three sessions indicates strong underlying demand, with geopolitical and macroeconomic factors outweighing the headwind from higher bond yields.
Silver Rebounds Sharply
Silver prices rebounded impressively, gaining Rs 5,000 per kilogram in trading. The white metal, which had been under pressure in recent weeks, benefited from the broader rally in precious metals. Analysts attributed the rebound to short-covering and renewed investor interest in industrial metals, as silver also has significant industrial applications.
The recovery in silver suggests a potential shift in market dynamics, with traders eyeing further upside if geopolitical tensions persist. However, volatility is expected to remain high, given the uncertain global economic outlook.
Market Outlook
Looking ahead, gold prices are likely to remain supported by safe-haven demand, but any de-escalation in West Asia tensions or easing inflation concerns could trigger profit-booking. Silver's trajectory will depend on industrial demand trends and its correlation with gold. Traders are advised to monitor global cues closely, including US economic data and central bank policies, for further direction.
In summary, the precious metals market is currently driven by a mix of geopolitical risks and inflation fears, with gold extending its gains and silver making a strong comeback. Investors remain focused on safe-haven assets amid ongoing uncertainties.
