Amidst rising tensions in the Middle East, the bullion market witnessed renewed stir. After a week of fluctuations, gold and silver suddenly gained momentum on Friday evening. The main reason for this was a crucial decision by US President Donald Trump, which completely changed the market’s direction. Investors’ confidence returned to gold, and a strong surge in prices was recorded.
April Gold Futures on MCX saw a rise, leading to a jump of about ₹3,500 per 10 grams in gold prices, reaching ₹1,45,500. Similarly, silver prices also increased by more than ₹10,000 per kg, reaching the ₹2.33 lakh mark. In the international market, April Gold Futures on COMEX also rose by $93, with prices reaching $4,601 per troy ounce, whereas just a day earlier, gold had seen a $176 drop. Looking at the week-long trends, gold is still in a downward trend.
Market Mood Changed by Trump’s Decision
Behind this surge is US President Donald Trump’s decision to temporarily postpone a potential attack on Iran’s energy infrastructure. He gave time until April 6 to open the Strait of Hormuz. This move created a sense of global relief, and as soon as signs of de-escalation appeared, investors once again turned to gold and silver as safe-haven options, leading to a rise in prices.
Yet, why the uncertainty?
Although gold and silver prices have surged, the market is not yet completely stable. The ongoing tensions between the US and Iran, uncertain conditions regarding the Strait of Hormuz, and changing global political situations are making gold and silver quite volatile at this time.
What is the message for investors?
Experts say that both gold and silver may continue to see fluctuations (ups and downs) at this time. Even small news items are affecting prices. Therefore, investors are advised to make decisions carefully and not to invest in haste.
