Blitz India Business
NEW DELHI: Gold prices surged 1.31 per cent on a weekly basis as escalating conflict between the US and Iran, along with a surge in crude oil prices, prompted a flight to safe-haven assets.
MCX gold August futures gained 0.17 per cent while MCX silver September futures advanced 1.33 per cent. Gold futures settled at Rs 1,43,066, while silver futures at Rs 2,22,301 per kg on the commodity exchange.
The price of 10 grams of 24-carat gold was at Rs 1,43,781 as against Rs 1,41,915 a week before in market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Risk premiums of precious metals rose as renewed US‑Iran tensions and attacks on tankers in the Red Sea sent crude prices sharply higher.
However, gold and silver entered a range‑bound pattern later this week as energy shock rekindled inflation fears. These fears lifted US Treasury yields and strengthened the dollar, weighing on demand for non‑yielding precious metals.
US President Donald Trump doubled down on his threat of a “massive attack” against Iran later this week.
Brent crude rallied nearly 9.8 per cent during the week and briefly crossed the $100 a barrel mark, after Yemen’s Houthi rebels claimed strikes on two Saudi tankers in the Red Sea fuelling gold’s rally.
Investors also increased expectations that the Federal Reserve could maintain a more hawkish policy stance, as higher energy costs threaten to complicate the inflation outlook.
