Gold, silver prices hit fresh peaks on strong global cues amid escalating tensions in Middle East

New Delhi: Extending gains for the second day in a row, gold and silver prices hit fresh all-time high levels on Tuesday, tracking strong trends in the international markets amid fears of escalating tensions in the Middle East.

According to HDFC Securities, gold prices zoomed Rs 700 to hit its lifetime high of Rs 73,750 per 10 grams in the national capital on Tuesday.

It had closed at Rs 73,050 per 10 grams on Monday.

Similarly, silver price jumped Rs 800 to hit a record high of Rs 86,500 per kg.

"Spot gold prices (24 carats) in the Delhi markets are trading at a new record high of Rs 73,750 per 10 grams, up by Rs 700, taking positive cues from overseas markets," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

In the global markets, spot gold at Comex was trading at USD 2,370 per ounce, up by USD 15 from the previous close.

Gold rose as demand for the haven asset grew amid fears of escalating tensions in the Middle East following Iran's unprecedented attack on Israel last week.

Investors' attention turned towards a potential counter strike that is likely to increase the risk of starting a full-blown war between the two countries, which spiked the safe haven premium in bullion prices, Gandhi said.

Silver was also quoting higher at USD 28.40 per ounce. In the previous close, it had finished at USD 28.25 per ounce.

Further, investors will look forward to the US Federal Reserve Chair Jerome Powell's speech on Tuesday, following higher-than-expected inflation data last week, which will further provide more insights on the monetary policy outlook.

However, elevated US Treasury yields and firm dollar will limit the upside in the precious metal prices and keep the metal volatile, Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said.

Meanwhile, in futures trade on the MCX, the most traded June contract of gold was trading at Rs 72,626 per 10 grams, up by Rs 349 or 0.48 per cent. During the day, it hit an intra-day high of Rs 72,927 per 10 grams.

Further, the August delivery contract of the precious metal was trading at Rs 72,800 per 10 grams.

However, May contract of silver was trading lower by Rs 314 or 0.37 per cent to Rs 83,537 per kg on the Multi Commodity Exchange (MCX).

"MCX Gold surged, while Comex gold reached USD 2,370 per ounce with overnight gains.

"Looking ahead, sentiment remains bullish for gold as long as geopolitical tensions persist and escalate," Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said.