New Delhi Mid-East geopolitical developments involving the US and Iran triggered a sharp rally in precious metals. Following reports hinting at reduced regional tensions, both gold and silver saw aggressive buying in domestic and international markets on Friday, August 7. Market Highlights: Record Spikes in India Gold Rally: On the Multi Commodity Exchange (MCX), gold futures for October delivery surged by ₹3,722 to touch an intraday high of ₹1,52,580 per 10 grams, before trading near ₹1,51,572 (up 1.82%). Silver Surge: Silver for September delivery jumped by ₹9,644 to reach a high of ₹2,35,480 per kg, later settling around ₹2,30,677 per kg (up 2.14%). Global Trends: International spot gold hovered near $4,450 per ounce on COMEX, while silver broke past $62 to $65 per ounce, marking one of their strongest weekly gains since January. Key Drivers Behind the Price Hike According to commodity analysts, the sharp uptick in precious metals was driven by a combination of macroeconomic and geopolitical factors: Easing Crude Oil Prices: Softening oil prices helped boost overall investor sentiment in precious metals. Weaker US Dollar: A declining greenback made dollar-denominated commodities more attractive to global buyers. Strait of Hormuz Supply Hopes: Anticipation around agreements regarding vessel transit through the Strait of Hormuz initially alleviated immediate supply chain disruption fears. Expert Take: While optimistic headlines initially drove the rally, lingering legislative discussions in Iran regarding potential transit restrictions on certain vessels maintain underlying market volatility and inflation concerns. Post navigation Lok Sabha Passes Taxation Bill Allowing Government to Permit Fees on UPI and Electronic Payments
