gold and silver price Market experts said on Saturday that they were expected to open sharply higher on Monday as tensions between Israel and Iran intensified, which was prompting investors to turn to safe-haven assets.
The situation further deteriorated after Israel launched a pre-emptive missile attack on Israel. Iranleading to explosions in Tehran and fueling fears of a wider conflict. Experts say this unpredictability is prompting investors to turn to safe-haven assets such as gold and silver.
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Will gold and silver prices hit $6,000 and $200 respectively soon?
Prices soar due to geopolitical threats and economic fallout across the globe, including the U.S. inflation Statistics and increase in gold imports from China. With gold approaching $5,300 and silver approaching $93, market participants are keeping a close eye on whether these metals may reach $6,000 and $200 respectively.
Market analysts warn that while higher gold prices are feasible, reaching $6,000 for gold or $200 for silver will require sustained demand and continued global instability.
Vandana Bharti, assistant vice president of commodity research at SMC Global Securities, said it is expected that MCX gold futures may reach $24 carat purity per 10 grams is INR 1.70 Lakhs and silver may rise to $According to Money Control, it will reach $300,000 in the short term.
Comex spot silver prices were up 7.85% at $93.82 an ounce as of 9:33 a.m. GMT on February 28, while gold was at $5,296 an ounce. Last Friday, gold fell slightly by 0.08% during the MCX trading session, closing at $1,61,971 pieces per 10 grams, while silver fell 0.23% to $2,81,990 per kg, affected by profit taking after the recent price increase.
“The escalation of US-Iran war fever is expected to heighten uncertainty, with investors expected to view gold and silver as safe-haven assets. We expect a gap in the precious metals,” DT Next reported, citing an expert.
Why are gold and silver prices rising at this time?
The price increase is mainly due to uncertainty caused by tensions between Israel and Iran. During geopolitical crises, investors tend to favor safe-haven metals. Falling U.S. Treasury yields lower opportunity costs, increasing gold’s appeal. Additionally, rising U.S. producer prices suggest inflation may be rising. China’s gold imports through Hong Kong have increased significantly, boosting global demand. Analysts assert that these combined factors are driving gold and silver prices higher.
What are the current prices of gold and silver?
Gold prices hit a nearly one-month high on Friday, trading at $5,230.56 an ounce. U.S. gold futures for April delivery closed at $5,247.90. The increase represents a 7.6% gain so far in February.
Silver also posted gains, with spot prices rising 4.8% to $92.60 an ounce, with a monthly gain target of 9.7%.
