Gold prices rise amid geopolitical tensions; experts share MCX strategy

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Gold prices jumped by Rs 600 to Rs 78,050 per 10 grams in the national capital on Tuesday, reflecting a strong global trend. On Monday, the precious metal closed at Rs 77,450 per 10 grams. Local buying, driven by wedding season demand, also supported the rise, traders said.

Similarly, silver saw a rise of Rs 1,500, reaching Rs 93,500 per kg, compared to Rs 92,000 on Monday. Gold of 99.5% purity rose by Rs 600 to Rs 77,650 per 10 grams from Rs 77,050 in the previous session.

In futures trading on the MCX, gold contracts for December delivery increased by Rs 615 (0.82%), trading at Rs 75,662 per 10 grams. According to Deveya Gaglani, Senior Research Analyst at Axis Securities, gold’s recent rebound followed a dip in the dollar index.

Similarly, silver contracts for December delivery rose Rs 677 (0.75%) to Rs 91,190 per kg on the MCX.

In global markets, Comex gold futures rose by USD 19.50 (0.75%) to USD 2,634.10 per ounce. Jateen Trivedi, VP of Research at LKP Securities, linked the gold rally to escalating geopolitical tensions, particularly fears of nuclear risks in the Russia-Ukraine conflict, boosting demand for safe-haven assets like gold.

Gold’s appeal surged with a one-week high, reaching over USD 2,615 per ounce, as US Treasury yields and the dollar saw a pullback, according to Saumil Gandhi, Senior Analyst at HDFC Securities. Similarly, silver futures on Comex rose 0.79%, trading at USD 31.47 per ounce during Asian trading hours.

Goldman Sachs projects a further surge in gold and silver prices, with a target of USD 3,000 per ounce by December 2025. The forecast cites rising demand from central banks and expected US interest rate cuts as key factors.

Gold has rallied strongly this year, setting records, although it faced a pullback following Donald Trump’s US election win, which strengthened the dollar. Nevertheless, ongoing official-sector buying and a shift toward easier monetary policy from the US Federal Reserve continue to support gold’s upward momentum.