Precious Metals Surge as Global Tensions and Economic Uncertainty Rise

The global precious metals market experienced a significant surge this week, driven by a combination of weakening US economic indicators, aggressive central bank accumulation, and escalating Middle Eastern tension.

Domestic retail 24-karat gold prices jumped ₹6,200 (4.00%) to reach ₹161,030 per 10 grams, while silver climbed ₹9,440 per kg (3.98%) to close at ₹246,670.

The Multi Commodity Exchange (MCX) saw even sharper gains, with the October gold contract rallying ₹7,100 (4.60%) to settle near ₹160,700 per 10g, and MCX September silver contracts rocketing ₹15,000 (6.60%) to touch ₹245,552 per kg.

The US Department of the Treasury's decision to scale up its long-dated debt buyback scheme to $4 billion per session sent shockwaves through fixed-income markets, prompting fund managers to pivot toward physical gold.