Gold, Silver Gain Ground as Markets React to Trade Turmoil

New Delhi: Gold and Silver prices continued their upward trajectory in the domestic futures market on Tuesday, as escalating global trade concerns boosted safe-haven demand. Investors sought refuge in precious metals amid signs of strain in global trade relations, pushing prices higher despite recent volatility.

Gold futures for June 5 delivery opened strong on the Multi Commodity Exchange (MCX) at ₹93,496 per 10 grams — a ₹244 gain from the previous close of ₹93,252. Although it briefly dipped to an intraday low of ₹93,250, the yellow metal remained resilient. At the time of reporting, the contract was trading at ₹93,372, up ₹120 or 0.13%.

The upward momentum is being attributed to growing investor anxiety over international trade negotiations, coupled with a weakening rupee and concerns over inflationary pressures. Analysts suggest that with uncertainty looming over global economic recovery and geopolitical developments, gold remains a preferred hedge against volatility.

Silver also mirrored gold’s performance in the early hours of trade. Futures contracts for May 5 delivery opened at ₹94,816 per kilogram, marking a modest gain of ₹54 from the previous close of ₹94,762. As the session progressed, the white metal traded at ₹94,950, up ₹80 or 0.08%. It oscillated between an intraday low of ₹94,500 and a high of ₹94,999 during the morning trade session.

“Safe-haven sentiment is clearly dominating the market. Both gold and silver are benefiting from investors pulling out of riskier assets. The technical charts also support a bullish trend in the short term,” said Anuj Gupta, Head of Commodities and Currency at HDFC Securities.

Market participants are closely watching key developments in global trade dynamics, especially the standoff between major economies, which is expected to influence commodity markets further. Meanwhile, the U.S. dollar index and bond yields — both critical factors for gold prices — will also play a key role in shaping price trends.

Jewellery demand in the domestic physical market may remain subdued in the short term due to elevated price levels, but broader investor interest continues to keep futures trading active and volatile.