Last Updated:
Gold jumps 3.5 percent on COMEX to 4557.90 as silver surges over 5 percent to 73.14, tracking Sensex and Nifty 50 rallies amid easing West Asia tensions.
Gold, silver prices rebound after correction
Gold and silver prices rebounded sharply on Wednesday, tracking gains in global equities as easing geopolitical tensions and a drop in crude oil prices lifted overall market sentiment.
On COMEX, gold rose 3.5% to $4,557.90 per ounce, after hitting an intraday high of $4,601. Silver outperformed, jumping over 5% to $73.14 per ounce, supported by a mix of short covering and fresh buying interest.
The rally in precious metals comes even as Indian benchmark indices extended their surge. The Sensex climbed over 1,600 points intraday, while the Nifty 50 gained more than 2%, taking their two-day rally to nearly 4%. The sharp fall in crude oil prices and hopes of de-escalation in the West Asia conflict have boosted risk appetite across asset classes.
Typically, gold moves inversely to equities, acting as a safe-haven asset during uncertainty. However, the current rebound in both equities and precious metals suggests a more nuanced market dynamic. Investors appear to be balancing risk-on sentiment with selective hedging, especially amid lingering geopolitical uncertainty.
According to market expert Aksha Vora, gold prices are reacting to rapidly shifting geopolitical signals. “There was a fall in gold prices earlier due to a decline in risk aversion despite rising tensions, leading to some unwinding. However, the recent increase in gold prices indicates short-term buying interest,” she said. She added that overall sentiment remains cautious, with investors closely tracking global cues. Notably, oil and gold may continue to move in opposite directions unless supply disruptions emerge in the Strait of Hormuz, which could significantly alter market trends.
On silver, Vora highlighted that the rally is partly driven by short-covering and opportunistic buying. “Silver’s price movements are influenced by both industrial demand and global sentiment, which could keep volatility elevated in the near term,” she noted.
March 25, 2026, 4:46 PM IST
Read More
Source link
[ad_3]
