Mumbai–Gold and silver prices moved higher on Tuesday as persistent geopolitical tensions in the Middle East increased demand for safe-haven assets and global bullion markets strengthened.
On the Multi Commodity Exchange, gold futures for August delivery rose as much as 1.03%, or Rs 1,460, to an intraday high of Rs 142,848 per 10 grams.
September silver futures climbed 1.54%, or Rs 3,380, to an intraday high of Rs 221,780 per kilogram.
Gold was later trading at Rs 142,741 per 10 grams, up Rs 1,353, or 0.96%, after touching a session low of Rs 142,157.
Silver was trading at Rs 221,402 per kilogram, an increase of Rs 3,002, or 1.37%, after falling as low as Rs 219,200 earlier in the session.
The metals opened at Rs 142,386 per 10 grams for gold and Rs 219,200 per kilogram for silver.
The rise in domestic prices followed gains in international bullion markets as Brent crude fell below $90 a barrel amid reports of diplomatic efforts to ease the conflict in the Middle East.
Gold prices also gained after oil retreated following reports that the United States had ended its latest round of airstrikes against Iran.
Brent crude had previously climbed above $90 a barrel, raising concerns about higher global inflation and the possibility that major central banks, including the Federal Reserve, could maintain tighter monetary policy.
Commodity analysts said bullion prices have been volatile as investors balance geopolitical risks against expectations for U.S. interest rates.
Higher interest rates typically make non-yielding assets such as gold less attractive by increasing the opportunity cost of holding them. However, continuing geopolitical uncertainty has supported demand for safe-haven assets despite pressure from a stronger U.S. dollar. (Source: IANS)
