Commodity Market Today: Gold, Silver Rise on Safe-Haven Demand as Middle East Tensions Escalate

Commodity markets traded higher on Wednesday, with precious metals extending gains and crude oil remaining elevated as investors continued to monitor the escalating conflict between the US and Iran. Renewed geopolitical uncertainty boosted demand for safe-haven assets, while higher oil prices kept inflation concerns alive ahead of next week's US Federal Reserve policy meeting.

Gold and silver prices extended gains on Wednesday as investors rushed to safe-haven assets amid escalating tensions in the Middle East. In India, MCX Gold August futures traded above ₹1,44,500 per 10 grams, while MCX Silver September futures climbed above ₹2,26,350 per kg during morning trade. Brent crude remained above $92 per barrel, reflecting persistent concerns over global energy supplies.

What's Driving Commodity Markets Today?

Gold and silver extended gains after renewed buying offset the pressure from a stronger US dollar and elevated Treasury yields. According to the latest commodity research note, investor sentiment remained focused on developments in the Middle East after reports suggested the US is seeking a longer ceasefire while Iran proposed a temporary truce. Markets are also awaiting next week's US Federal Reserve meeting, along with US jobless claims and flash PMI data later this week for fresh cues on interest rates.

Meanwhile, crude oil prices continued to rally as geopolitical tensions fuelled concerns over potential supply disruptions across key shipping routes, keeping inflation risks elevated.

MCX Gold Market Today

Domestic gold prices tracked firm global bullion prices after spot gold rallied more than 1.7% in the previous session to settle near $4,080 per ounce. On the MCX, August gold futures traded above ₹1,44,500 per 10 grams, extending Tuesday's gains.

The precious metal continued to draw support from safe-haven buying amid geopolitical uncertainty, although a stronger US dollar and expectations that the Federal Reserve may keep interest rates higher for longer could limit further upside in the near term.

MCX Silver Market

Silver outperformed gold as industrial demand expectations and safe-haven buying lifted prices. Spot silver gained more than 4% in the previous session to close near $58.8 per ounce, while MCX September silver futures climbed above ₹2,26,350 per kg in Wednesday's trade.

The gold-silver ratio narrowed further, indicating stronger relative momentum in silver compared with gold.

Crude Oil Market

Crude oil remained near its highest level in five weeks, with Brent trading above $92 per barrel and WTI above $85 per barrel.

The latest commodity report noted that concerns over supply disruptions intensified after continued military operations involving the US and Iran, renewed Houthi threats against vessels in the Red Sea, and attacks on Black Sea export infrastructure handling Kazakhstan's crude. While physical flows through the Strait of Hormuz and the Red Sea remain largely uninterrupted, geopolitical risks continue to support oil prices.

Base Metals

Base metals traded mixed, with copper remaining among the top performers.

LME copper climbed nearly 2% to its highest level since early June as tightening inventories, rising Chinese import premiums and supply disruptions at major Chilean mines supported prices. Aluminium, zinc and nickel also remained firm, although gains were relatively modest. According to the report, continued inventory drawdowns and supply concerns are expected to keep copper supported despite broader geopolitical uncertainty.

Key Levels to Watch

According to Kotak Neo Research, MCX Gold (August) is expected to trade with a sideways-to-bullish bias in the ₹1,43,550-₹1,45,535 range. MCX Silver (September) is also seen trading sideways to bullish between ₹2,20,450 and ₹2,33,020, while MCX Crude Oil (July) is expected to remain sideways to bullish in the ₹8,025-₹8,480 range.

For the current session, MCX Gold (August) has immediate support at ₹1,43,676, followed by ₹1,43,209, while resistance is placed at ₹1,45,186 and ₹1,45,653. MCX Silver (September) has support at ₹2,24,107 and ₹2,22,879, while resistance is seen at ₹2,28,081 and ₹2,29,309. MCX Crude Oil (August) has support at ₹8,117 and ₹8,048, while resistance is placed at ₹8,343 and ₹8,412.

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