Gold and silver prices rose sharply on Wednesday, driven by strong safe-haven demand despite the announcement of a two-week ceasefire plan by US President Donald Trump.
On the Multi Commodity Exchange, gold futures climbed over 2 per cent to trade above Rs 1,53,900, while silver surged nearly 6 per cent, reflecting robust investor interest.
Analysts attributed the rally to continued uncertainty in global markets, noting that buying at lower levels indicates strengthening momentum in precious metals.
Despite easing geopolitical tensions, investors remained cautious, supporting demand for traditional safe-haven assets such as gold and silver.
In the currency market, the Indian rupee strengthened to 92.61 against the US dollar, improving from its previous close of 93.
Meanwhile, the Reserve Bank of India kept the repo rate unchanged at 5.25 per cent, providing stability to financial markets.
Oil prices, however, moved sharply lower, with Brent crude falling nearly 16 per cent and US WTI crude declining about 20 per cent, reflecting reduced concerns over supply disruptions.
Equity markets also reacted positively, with Sensex and Nifty rising strongly following the ceasefire announcement and steady monetary policy stance.
The improved sentiment across asset classes followed Trump’s confirmation of a temporary ceasefire with Iran, which eased immediate geopolitical tensions.
In a post on his platform, Truth Social, he stated that US forces had been instructed to stand down, marking a shift from earlier warnings of severe consequences.
While the ceasefire brought some relief, continued demand for gold and silver suggests that investors remain cautious, balancing optimism with concerns over potential volatility in global markets.
