Gold, silver ETF prices jump up to 7% today as safe-haven demand surges amid US-Iran tensions

Gold and Silver

• Gold and silver ETFs surged amid West Asia tensions.
• Tata Silver ETF up 7%, gold ETFs rose up to 5%
• Safe-haven demand lifted bullion as equities fell sharply

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Gold and silver exchange-traded funds (ETFs) rallied sharply in early trade on Monday as geopolitical tensions in West Asia lifted global bullion prices and triggered a flight to safety. 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 on the screen.

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.

On the gold side, 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.

Bullion prices extend gains

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.

• Also read | Rupee sinks 20 paise to a low of 91.25 against the dollar as Iran war fuels crude surge

The uptick reflects renewed safe-haven demand as escalating US-Israel and Iran tensions pushed investors away from risk assets. Equity markets across Asia opened lower, and volatility spiked, with domestic indices trading deep in the red during early deals.

Volatility to remain elevated

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. Meanwhile, 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.

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.

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