Gold and silver prices in India’s futures market have surged to unprecedented levels, driven by ongoing supply shortages and the escalating trade tensions between the US and China. After a brief dip on Friday due to profit booking, the market bounced back strongly on Monday, with investors flocking to these traditional safe-haven assets.

Gold Futures Hit New Peaks

Gold futures on the Multi Commodity Exchange (MCX) opened at ₹123,239 per 10 grams and climbed to an intraday high of ₹123,680, marking an increase of over ₹2,300 from the previous close of ₹121,364. At the time, gold was trading at ₹123,325 per 10 grams, reflecting strong investor confidence amid global uncertainty.

Silver Experiences Stronger Volatility

Silver witnessed even higher volatility, starting at ₹1,48,500 per kilogram and surging to ₹1,52,322, a gain of more than ₹5,800 in a single session. By 10:10 AM, silver was trading at ₹1,51,606 per kilogram, highlighting investors’ growing interest in precious metals as a hedge against market instability.

Exceptional Yearly Gains

The gains this year have been remarkable. Gold has returned 61.15%, rising from ₹76,748 on December 31, 2024, to the current ₹123,680 per 10 grams. Silver outpaced gold, gaining 75%, moving from ₹87,233 to ₹1,52,322 per kilogram.

Global Factors Driving Demand

The sharp rise in precious metal prices is attributed to shortages in the physical market and heightened global uncertainty caused by the US-China trade conflict. Anuj Gupta, Director at Ya Wealth, stated, “Investors are flocking to safe havens amid this tension. We expect gold to remain near ₹1.30 lakh until Dhanteras, while silver could reach ₹1.55 lakh.” Analysts note that while short-term gains may continue, long-term effects of US-China tensions are unlikely to sustain indefinitely.

Festive Season Outlook

With the festive season approaching, demand for gold and silver is expected to remain strong. Market watchers anticipate that these shining metals will continue to capture investor attention, potentially leading to further price rallies in the coming weeks.