Gold At $5100, Silver $110 As Tensions Fuel Investment Buying

CHENNAI: Gold in the international market zoomed past the $5000 mark to touch $5100 per ounce while silver touched $110 per ounce on Monday as safe-haven buying of precious metals continued. The domestic markets remained closed on Monday. Gold prices rose to touch $5,100 an ounce, extending a record-breaking rally as investors increased safe-haven allocations amid mounting global uncertainties. Though Canadian officials clarified there are no plans for a comprehensive trade agreement with China, the tensions following threats from the United States to steep tariffs on Canadian imports were not fully eased. Disputes between the United States and Europe over Greenland and tensions in the Middle East, sustained risk aversion. Concerns about a looming US government shutdown and anticipation ahead of the Federal Reserve’s policy meeting further supported demand for precious metals. After a strong end to 2025, gold has climbed roughly 17 per cent so far this year, said Ajay Kedia, MD, Kedia Commodities. In the case of silver, prices touched $110 per ounce on strong safe-haven and investment demand. Silver prices have moved up from $30 levels in January 2025, crossing $100 in one year. Persistent tightness in the physical market has fuelled higher prices, encouraging robust retail buying, particularly in China and India. Investors are increasingly favouring 1-kilogram silver bars, prompting Chinese manufacturers to shift production away from jewellery toward investment products. Among precious metals, platinum futures surged toward $2,900 an ounce, extending a record-setting rally driven primarily by strong investment demand and tight physical availability. The relatively small platinum market makes prices highly sensitive to incremental buying, especially as lower absolute prices allow investors to accumulate more ounces, said Kedia. While industrial and jewellery demand have provided limited support, the rally is largely underpinned by physical bar purchases. Elevated lease rates in London indicate persistent scarcity, while potential demand from China’s local-currency contracts could add support. Expectations of lower US interest rates, a weaker dollar, and rising geopolitical and trade tensions continue to bolster broader precious metal demand.



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