A sharper escalation is conceivable that pushes crude towards $90–100, if the Strait of Hormuz is disrupted. This would raise the inflation risk materially and could force tighter monetary conditions, say economists.
Spot gold gained 2.1% to $5,390.38 an ounce as of 1050 GMT, after hitting a more than four-week high earlier in the session. The metal touched a peak of $5,594.82 on January 29.
Brent jumped 6.4% to $77.57 a barrel, though it had briefly topped $82.00 at one stage, while U.S. crude climbed 6.2% to $71.17 per barrel. Safe-haven gold rose 1.6% to $5,360 an ounce.
The world’s third-largest oil importer is considering options that include turning to Russian cargoes currently loitering near its waters, according to people familiar with the discussions.
The surge in gold and silver ETFs tracked firm gains in underlying bullion prices. At around 09:30 am, when the Sensex was down 959 points and the Nifty slipped 1.15 percent to 24,889 -- gold and silver-linked ETFs were among the major gainers.
Bullion climbed more than 2% to around $5,390 an ounce in early trading, having gained more than 3% in the previous week as American troops amassed in the region.
Brent crude futures climbed as much as 13% to $82.37 a barrel, the highest since January 2025, and traded at $79.34 by 2305 GMT, up $6.47, or 8.88%.
If US labour market conditions remain robust, expectations for a June rate cut may fade further. Conversely, a weaker jobs report could prompt markets to recalibrate rate expectations.
Spot gold has risen by about 20% this year, hitting a three-week high of $5,248.89 an ounce on Tuesday. It hit a record peak of $5,594.82 on January 29
After a sharp selloff shook out leveraged traders, the question on every bullion investor's mind is whether gold and silver are gearing up for fresh all-time highs
Sitharaman was speaking during the press briefing after addressing the RBI Central Board on February 23
On the data front, US weekly jobless claims and Producer Price Index (PPI) figures, along with speeches from several FOMC officials, will be closely watched as investors seek clearer guidance on the timing of the Federal Reserve's next rate cut.
On stock markets, a rally across Asia following gains by US tech heavyweights failed to bolster indices in Europe and the United States, where traders focussed on a string of corporate results
Renewed geopolitical risks boosted haven demand for bullion, which advanced as much as 0.9% before paring some of the gains
This comes despite a muted sentiment in global commodity prices on a firm dollar ahead of key US inflation data that could influence the Federal Reserve's interest rate-cutting trajectory.
A powerful rally carried gold to an all-time high above $5,595 an ounce in late January, but the market overheated after a surge in speculative buying and snapped back almost to $4,400 in just two sessions.
Bullion was near $4,880 an ounce in early trading, having lost more than 3% over the previous two sessions, as the US dollar strengthened.
West Texas Intermediate was down 0.9 percent at $62.33 per barrel after earlier rising 1.5 percent, while international benchmark Brent North Sea Crude slipped 1.8 percent to $67.42.
The metal had rallied briefly on Friday when modest US inflation data boosted the case for the Federal Reserve to trim interest rates.
Import volumes rose to 5,727.07 thousand kilograms from 369.48 thousand kilograms, while the average unit price increased to USD 1,356.98 per kg from USD 925.06 per kg.
With markets in China closed this week for the Lunar New Year holiday, liquidity is thinner than usual during Asian trading hours.
Gold prices have turned choppy following their sharp swings in early 2026, but the broader structure still appears constructive, an analyst said.
Spot gold fell 1.1% to $4,988.04 per ounce by 0359 GMT. U.S. gold futures for April delivery lost 0.8% to $5,006.60 per ounce.
Gold hit $5,594 then fell 10% as US Treasury chief flags China’s speculative trading; analysts warn leverage and ETF surge may signal bubble risk.
Markets will also watch the Supreme Court’s ruling on Trump tariffs scheduled for February 20. The week ahead will be holiday-shortened with potentially thinner liquidity.