Gold rises 2%, silver jumps over 5% on MCX as geopolitical tensions ease

Gold and silver prices surged in early trade on Wednesday (April 8), tracking global gains as markets reacted to a temporary easing of geopolitical tensions in West Asia.

On the domestic front, futures prices on the Multi Commodity Exchange (MCX) opened sharply higher. Gold rose 2.24% to ₹1.53 lakh per 10 grams (24-karat), while silver climbed 5.24% to ₹2.43 lakh per kilogram.

The rally followed a shift in geopolitical sentiment after Donald Trump said the United States would pause military action against Iran for two weeks, citing progress on key objectives and opening the door for negotiations. The development reduced immediate fears of supply disruptions and energy-driven inflation, prompting a recalibration of risk across asset classes.

In international markets, gold prices climbed to a near three-week high.

Spot gold gained about 2.3% to $4,812 per ounce, after rising more than 3% earlier in the session, while US gold futures advanced 3.4% to $4,841 an ounce.

Silver also saw strong buying interest, jumping nearly 5% to around $76 per ounce.

Analysts attributed the move to a “relief rally” as investors priced in reduced near-term geopolitical risks. However, uncertainty remains over whether the pause will hold and translate into sustained de-escalation.

Despite gold’s traditional role as a safe-haven asset, its trajectory remains closely tied to interest rates and inflation expectations. Elevated energy prices—if sustained—could still complicate central bank policy paths globally, keeping bullion volatile. Gold tends to benefit during periods of financial instability and inflation but faces headwinds in a high-interest-rate environment due to its non-yielding nature.

Market participants are also awaiting further signals from the U.S. Federal Reserve, including minutes from its previous policy meeting, which could offer clues on the interest rate outlook.

Ross Maxwell, Global Strategy Operations Lead at VT Markets, said precious metals are likely to remain volatile through the year, though with a modest upward bias. He noted that gold could continue to draw support from safe-haven demand amid geopolitical uncertainty, while silver may see mixed performance given its industrial demand sensitivity.

“Key drivers to watch include interest rates, inflation expectations, central bank policies, US dollar strength, and geopolitical developments,” he said. “Rate cuts or rising inflation could support prices, while a stronger dollar may limit gains.”

From a domestic demand perspective, Dishis Designer Jewlellery's spokesperson noted that even minor price corrections tend to support consumer buying in India, where gold holds both cultural and investment appeal. Industry players say periods of price dips often trigger fresh purchases, particularly in the jewellery segment.

-With agencies inputs