Gold prices in Mumbai surge by Rs 1,707 amid global market shifts

Representational image. File pic

Gold prices on Tuesday surged after US President Donald Trump indicated that the West Asia War may end anytime soon. The precious metal market in the last few days has been severely impacted by global tensions.

While the tensions look to ease out in the coming days, the price of gold climbed by Rs 1,707 on Tuesday.

Gold prices in Mumbai

Experiencing extreme volatility in the last few days due to global turmoil, the prices of gold in Mumbai have been unstable. However, since Trump's statement that indicates easing global tensions, the prices of gold in Mumbai have surged by Rs 1,707. The 24-carat gold in Mumbai was priced at Rs 1,62,104 for 10 grams. Whereas the 22-carat gold stood at Rs 1,48,487 for 10 grams, nearing the Rs 1.5 lakh mark.

Gold and silver MCX

While gold MCX April futures on Monday lost 0.16 per cent to Rs 1,61,380 per 10 grams around 11.10 am on an intraday basis, the MCX silver May futures also declined 1.30 per cent to Rs 2,64,799 per kg.

The US dollar strengthened to cross its three‑month high, touching 99.34, up 0.36 per cent on an intraday basis, making dollar‑priced bullion costlier for holders of other currencies.

Analysts said that US Treasury yields surging, with the 10‑year papers hitting a one‑month high, increased the opportunity cost of holding non‑yielding metals.

Stock market opens in the green

Hours after Donald Trump indicated that the West Asia War might end anytime soon, the Indian benchmark indices opened with significant gains on Tuesday.The BSE Sensex, during the early trade, rose by 591.41 points, or 0.76 per cent, to reach 78,157.57 at 9:17 am, whereas the NSE NIFTY 50 climbed 158.20 points, or 0.66 per cent, to 24,186.25, reported ANI.

Furthermore, the main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 gained 1.05 per cent and the Nifty Small Cap 100 added 1.32 per cent.

While highlighting the impact of global turmoil, experts added, "Global markets are witnessing a dramatic pivot this morning as the 'Trump Effect' once again dictates the tempo of risk assets," Bagga noted, adding that the shift in market narrative occurred after President Trump asserted that the military operation is "very far ahead of schedule" and "very complete, pretty much", as cited by ANI.

(With inputs from IANS and ANI)