“Gold and silver prices are expected to remain extremely volatile, with a likely gap-up opening on Monday as the Middle East conflict, involving renewed US and Israeli military action against Iran, continues to weigh heavily on global risk sentiment,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
He added that escalating hostilities and fading prospects of a swift diplomatic breakthrough are prompting investors to gravitate toward traditional safe-haven instruments such as gold and silver, increasing expectations of a strong opening in bullion markets.
“As pressure mounts on global equities and other risk-oriented assets, funds typically rotate into precious metals, which are viewed as a hedge during periods of uncertainty,” Trivedi said.
Meanwhile, domestic commodity markets will remain shut on Tuesday on account of Holi.
