Bullion Bonanza: Precious Metal Prices Soar Amid Global Uncertainty

Silver and gold prices have reached unprecedented levels due to increasing investor demand for safe-haven assets amidst ongoing geopolitical and economic turmoil. The surge is driven by concerns over fiscal policy, geopolitical risks, and potential changes in fiscal measures as the Union Budget 2026 approaches.

On Tuesday, silver and gold prices soared to record highs in the futures market, driven by a surge in investor demand amid global economic and geopolitical uncertainty. Silver reached an unprecedented Rs 3.59 lakh per kg, while gold touched a lifetime high of Rs 1.59 lakh per 10 grams, marking significant gains for these treasured commodities.

Key factors contributing to this rise include heightened geopolitical tensions, particularly stemming from President Donald Trump's tariff threats on South Korean imports, and increased safe-haven demand among traders amid global market turbulence. Analysts pointed out that geopolitical strains and policy uncertainties have eroded confidence in bonds and currencies, prompting investors to turn to the stability of gold and silver.

Market experts are also eyeing the upcoming Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman. This could impact domestic bullion sentiment, as changes in fiscal measures and import duties are anticipated. Meanwhile, international markets saw profit-booking in silver and gold, which eased prices slightly, amid speculation regarding the US Federal Reserve's policy direction.

(With inputs from agencies.)