Silver & gold rise as demand strengthens on global uncertainty

New Delhi: Precious metal prices increased up to 2 per cent in the national capital on Wednesday, with silver rising to Rs 2.77 lakh per kilogram, and gold advancing to Rs 1.64 lakh per 10 grams, tracking strong global trends and sustained safe-haven buying.

According to the All India Sarafa Association, the white metal jumped Rs 5,900, or 2 per cent, to Rs 2,77,900 per kg (inclusive of all taxes) from Tuesday’s closing level of Rs 2,72,000 per kg.

Extending its gains for the fifth consecutive session, gold of 99.9 per cent purity appreciated by Rs 1,000, or nearly 1 per cent, to Rs 1,64,200 per 10 grams (inclusive of all taxes). It had settled at Rs 1,63,200 per 10 grams in the previous market session.

“Gold held on to moderate gains on Wednesday as persistent uncertainty over US trade policy and geopolitical tensions in the Middle East continued to drive safe-haven flows into precious metals,” Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

He added that ongoing tariff-related uncertainty, along with US President Donald Trump’s renewed threats of higher duties, has kept financial markets on edge and reinforced investor demand for defensive assets such as gold.

In the international market, spot silver gained USD 3.13, or 3.59 per cent, to USD 90.30 per ounce, while gold was trading nearly 1 per cent higher at USD 5,181.46 per ounce.

“Spot gold has recovered most of its losses incurred on Tuesday’s selloff which was induced by positive risk sentiment and a firmer US dollar,” Praveen Singh, Head of Commodities and Currencies, Mirae Asset ShareKhan, said.

Meanwhile, the US and Iran are scheduled to hold the third round of talks in Geneva on Thursday.

Renisha Chainani, Head of Research at Augmont, said the ongoing diplomatic engagement between Washington and Tehran and uncertainty surrounding Iran’s nuclear programme continue to embed a geopolitical risk premium in global markets supporting bullion prices further.