Precious Metals ETF Prices Surge Up to 7% Amid Rising US-Iran Tensions

Global Bullion Prices Surge Amid Geopolitical Tensions

Market Overview

In early trade on Monday, gold and silver exchange-traded funds (ETFs) experienced a sharp rally, driven by rising global bullion prices and a flight to safety triggered by escalating geopolitical tensions in West Asia. The Sensex and Nifty indices were down 959 points and 1.15 percent, respectively, at 09:30 am.

ETF Performance

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On the silver side, Tata Silver ETF surged over 7 percent, while ICICI Prudential Silver ETF and SBI Silver ETF climbed more than 6 percent each. Nippon India Silver ETF also gained over 6 percent. In the gold market, ICICI Prudential Gold ETF rose over 5 percent, Tata Gold ETF gained more than 5 percent, while Nippon India ETF Gold and SBI Gold ETF advanced 4-5 percent.

Underlying Bullion Prices

The surge in ETFs tracked firm gains in underlying bullion prices. MCX gold futures opened nearly 3.15 percent higher at Rs 1,67,217 per 10 grams (24-carat). In the international market, spot gold rose 1.86 percent to $5,345.50 per ounce in early Comex trade. Silver also edged higher, up 0.81 percent at $94.045 per ounce.

Market Sentiment

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Market participants expect volatility in precious metals to remain high as geopolitical developments evolve. Historically, episodes of elevated conflict risk have supported gold and silver prices due to their status as defensive assets. The rupee traded stronger at 91.24 against the US dollar in early trade, partially offsetting the impact of rising global gold prices on domestic rates.

Outlook

Analysts said that sustained gains in bullion will depend on how long geopolitical uncertainty persists and whether crude prices remain elevated. Any prolonged spike in energy costs could rekindle inflation concerns globally, reinforcing support for gold.