Precious Metals Rebound: Safe-Haven Demand Amid Geopolitical Tensions

Precious metals like silver and gold have rebounded in the national capital, with silver increasing by Rs 6,000 per kg and gold by Rs 1,050 per 10 grams. This resurgence is attributed to safe-haven demand amid geopolitical tensions, despite subdued global cues and volatile energy markets affecting investor expectations.

In a dramatic market shift, precious metal prices surged on Tuesday, marking a 2 percent rebound. Silver gained Rs 6,000 to Rs 2.62 lakh per kilogram, while gold climbed to Rs 1.61 lakh per 10 grams in the national capital, as reported by the All India Sarafa Association.

The bullish trend comes amid increased safe-haven demand triggered by geopolitical tensions, despite global cues remaining lackluster. According to Dilip Parmar, Senior Research Analyst at HDFC Securities, the strengthening of bullion prices is partly due to a softening rupee in domestic markets, which has helped spot gold prices withstand global pressures.

Facing volatile conditions exacerbated by the Gulf region's conflicts and climbing energy prices, investors eagerly await the US Federal Reserve's upcoming policy decision. Analysts suggest that the outcome, in light of ongoing geopolitical uncertainties, will play a critical role in shaping future bullion price trajectories.

(With inputs from agencies.)