Gold and silver have seen a sharp rally amid rising global uncertainties, with multiple factors fueling safe-haven demand for these precious metals. At the same time, base metals have surged to record highs, driven by strong industrial demand and supply constraints.
The global commodity market appears to be entering a cyclical uptrend. Gold prices have risen over 55% year-to-date (YTD), supported by geopolitical tensions, trade disruptions, and a weaker US dollar. Central banks continue to accumulate gold, while gold-backed ETFs saw their highest inflows in over three years in September. Silver has outpaced gold, with Comex silver up nearly 70% YTD and MCX silver gaining around 71%. MCX gold reached a record ₹1,23,450 per 10 grams, and silver touched ₹1,50,282 per kg. Analysts anticipate more upside during the festive season, particularly around Diwali.
Base metals have followed suit, with MCX copper reaching a new high of ₹1,014.80 per kg, while zinc traded near ₹297.70 per kg. Copper remains in focus due to global shortages and strong demand from EV and clean energy sectors. Analysts warn of potential short-term corrections, but the long-term trend remains bullish.
