Monday, March 2 — Commodities on the Multi Commodity Exchange (MCX) witnessed a sharp rally in early trade as escalating tensions in the Middle East triggered risk-off sentiment across global markets.
As of the morning session:
- Gold Futures were trading at Rs 1,67,176 per 10 grams, up 3.13%.
- Silver Futures rose to Rs 2,90,693 per kg, gaining 2.85%.
- Crude Oil Futures surged to Rs 6,446 per barrel, up 5.81%.
- Natural Gas Futures climbed to Rs 267.7 per MMBtu, advancing 2.06%.
What is driving the surge?
The broad-based rally follows heightened geopolitical tensions after major U.S.–Israel strikes on Iran and subsequent retaliatory developments. Markets are now closely watching the risk of disruption in the Strait of Hormuz, a critical global energy transit route.
Around 15–16 million barrels per day of crude and products and nearly 20% of global LNG trade pass through the strait. While authorities have stated that shipping remains open, vessel rerouting and elevated freight costs have intensified supply concerns.
Precious metals gain on safe-haven demand
Gold and silver benefited from safe-haven flows as investors moved toward defensive assets amid rising uncertainty. Gold, already trading near record levels this year, extended gains on geopolitical risk and inflation concerns.
Silver tracked gold higher, supported by both safe-haven demand and broader commodity strength.
Energy complex leads gains
Crude oil recorded the strongest move on MCX as traders priced in potential supply disruptions. Natural gas also gained amid fears of LNG shipment interruptions and rising global energy volatility.
Markets are expected to remain highly sensitive to further geopolitical headlines, shipping developments in the Gulf region, and upcoming global economic data.
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