Gold and Silver Prices Soar on US Debt Buybacks and Iran Tensions

Gold and silver prices have surged over 5% this week, fueled by the US Treasury's decision to double its long-term debt buybacks. This move aims to contain borrowing costs and has pushed US Treasury yields lower.

A weaker dollar also makes dollar-priced gold more affordable for buyers using other currencies. At 12:50 pm on Friday, MCX gold was trading at Rs 1,60,815 per 10 grams, up 0.87%, while MCX silver was at Rs 2,45,456 per kg, gaining 0.91%.

US Treasury Secretary Scott Bessent has said the US would impose what he described as 'the toughest sanctions in history' on Iran, which is adding to geopolitical tensions and uncertainty. This situation can push investors towards safe-haven assets like gold.