Gold and silver prices skyrocket after Trump's gesture: Silver jumps ₹12,000, gold follows suit

New Delhi (The Uttam Hindu): After falling for 9 consecutive days, the prices of gold and silver have suddenly seen a sharp rise. Surprising investors, the price of silver on MCX has jumped by almost 5.5 percent i.e. more than Rs 12,000 and has reached a record level of Rs 2,36,137 per 10 grams. At the same time, the price of gold on MCX has also strengthened by 4 percent i.e. more than Rs 5,500 and has reached Rs 1,44,434 per 10 grams. The prices of the yellow metal have also risen by more than 2 percent in the foreign markets.

Hopes of stopping the war and Trump's gesture did wonders

The biggest reason behind this meteoric rise in gold and silver prices is believed to be news of possible talks between the US and Iran. US President Donald Trump has clearly indicated that a diplomatic path is being sought to end the devastating war in the Middle East. If reports are to be believed, high-level peace talks between the two countries may soon take place. While a final response from Iran is still awaited, this hope for peace has generated tremendous enthusiasm in the bullion market.

Double support from weakness in dollar and crude oil

In the global market, according to Reuters, spot gold rose 2.1 percent to $4,568.29 per ounce due to a weak dollar and weak crude oil prices. Meanwhile, US gold futures for April delivery rose 3.8 percent and are trading at $4,569.40. Spot silver also rose 3.8 percent to $73.94 per ounce. According to Bloomberg, the dollar index's nearly 0.2 percent decline has made gold cheaper and more attractive to foreign investors. Interestingly, while gold has been moving in tandem with the stock market over the past few weeks, its trend with crude oil has been exactly the opposite.

The shadow of danger still looms large over the market

Although gold and silver have gained momentum, experts believe that the clouds of uncertainty and danger have not yet completely cleared from the market. Iran still maintains a strong hold on the Strait of Hormuz, and Israeli attacks continue. Given the gravity of the situation, the US has decided to deploy approximately 2,000 additional troops to the Middle East. Furthermore, high energy prices threaten to increase inflationary pressures, which could keep interest rates elevated. This month, the war caused crude oil to reach $120, raising interest rate concerns and causing a sharp decline of up to 15 percent in gold.

Central bank selling and the future trend

Amid this turmoil, there are reports that central banks in some countries are selling their gold to support their domestic currencies. Turkey, in particular, is being cited as a key player in this, whose central bank is seriously considering using its vast gold reserves, which is putting pressure on prices. Market experts say that gold's movement in the coming days will depend entirely on the Middle East war, crude oil prices, and global interest rate trends. If geopolitical tensions ease, the market will see further improvement, but if uncertainty persists, this period of volatility could be prolonged.