Gold and silver prices climbed sharply on Wednesday, surprising many investors. The sudden rise comes as global markets reacted to after a temporary ceasefire.
By around 11:15 am, MCX was trading at Rs 1,54,300, up by over Rs 4,011, while surged nearly Rs 13,652, to Rs 2,45,000.
The rise in precious metals came even as stock markets moved higher and crude oil prices fell. This shows that investors are still cautious and continue to lean towards safe-haven assets like gold.
Experts say gold is continuing to benefit from its safe-haven appeal. Even though tensions have cooled slightly, uncertainty has not disappeared.
“Gold prices have kept rising, with the current ceasefire news from Iran and the US also contributing positively to their rise. While this is meant to ease the tension at hand, it has only strengthened investors’ inclination towards holding investments that serve as havens in times of uncertainty,” said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA).
She added that while the overall mood looks positive, some ups and downs are still likely in the short term.
Silver has also seen a strong rally, supported by both investor interest and industrial demand.
“The price of silver has seen a rise due to positive sentiments among investors in light of the Iran-US truce agreement, in addition to continuous demand from industries,” Kamboj explained.
However, she cautioned that silver tends to be more volatile than gold, meaning prices can move sharply in either direction.
According to Ponmudi R, CEO of Enrich Money, the ceasefire has improved global sentiment and reduced fears of a prolonged conflict.
“The announcement of a temporary two-week ceasefire between the US and Iran has significantly improved global risk appetite, easing concerns around prolonged conflict and potential supply disruptions,” he said.
He added that gold is currently trading in the Rs 1,53,000–Rs 1,55,000 range. If it breaks above Rs 1,55,000, prices could move towards Rs 1,58,000–Rs 1,60,000. On the downside, a fall below Rs 1,52,000 may drag it lower.
For silver, prices are hovering around Rs 2,42,000–Rs 2,45,000. A breakout above Rs 2,45,000 could push it towards Rs 2,50,000, while a fall below Rs 2,40,000 may trigger some correction.
Experts are advising caution rather than aggressive buying at current levels.
For gold, a staggered approach, i.e., investing in parts over time, may be safer than putting in a lump sum at higher prices.
For silver, investors need to be even more careful due to its higher volatility. Buying during dips instead of chasing rising prices could be a better strategy.
In other words, both gold and silver are showing strength, but the rally may not be smooth. Prices could rise further if uncertainty returns, but short-term swings are likely.
For investors, the smart move is to stay patient, avoid panic buying, and take a gradual approach.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)