On October 9, President Donald Trump made a significant announcement regarding the United States' military stance towards Iran, stating that there will be no attacks prior to the upcoming midterm elections on November 3. This statement appears to strategically align military decisions with the political calendar, easing concerns among investors and traders. Following Trump's comments, gold and silver prices experienced a notable uptick in the Indian market, reflecting the market's positive reaction to reduced geopolitical risks.
As reported by CNBC, Trump emphasized that discussions with Tehran are ongoing and productive, which further contributed to calming market sentiments. In international markets, gold prices rose as a weaker US dollar and diminishing Treasury yields improved the appeal of bullion. Spot gold rose by 0.9% to $4,169.32 per ounce, recovering from a two-month low, while US gold futures similarly gained 0.9%, reaching $4,194.40 per ounce.
In the Indian context, the impact of these international developments was immediately felt. On October 9, the Multi Commodity Exchange (MCX) reported that gold rates were trading 0.72% higher at ₹1,50,990 per 10 grams. Additionally, silver futures were up by 1.22%, trading at ₹2,24,180 per kg. These fluctuations in precious metal prices highlight the interconnectedness of global events and local markets, where investor confidence can shift dramatically based on political announcements.
Here's a breakdown of the latest gold and silver prices across major Indian cities:
- Gold in New Delhi — 24K gold at ₹150,460/10 gm and 22K at ₹137,922/10 gm
- Gold in Mumbai — 24K gold at ₹150,720/10 gm and 22K at ₹138,160/10 gm
- Gold in Bengaluru — 24K gold at ₹150,800/10 gm and 22K at ₹138,233/10 gm
- Silver in New Delhi — 999 fine silver at ₹223,390/1 kg
The rise in gold and silver prices can be attributed to the market's reaction to both geopolitical stability and the continuing inflationary pressures. As the US Federal Reserve's interest rate outlook remains uncertain, investors are increasingly turning to gold as a safe haven asset. This trend may persist as the midterm elections approach, with potential implications for global economic policies and commodity markets.
