Gold and silver prices started the week on a strong note on Monday as rising global tensions pushed investors towards safe-haven assets.
Precious metals witnessed sharp gains after a US military operation in Venezuela over the weekend added fresh uncertainty to the global geopolitical landscape.
On the Multi Commodity Exchange (MCX), February gold futures opened higher at Rs 1,36,300 per 10 grams, compared to the previous close of Rs 1,36,761.
Prices continued to climb during the session and touched an intra-day high of Rs 1,38,200, marking a jump of Rs 2,439.
By 8:45 PM, MCX gold was trading Rs 2,037, or 1.50 per cent, higher at Rs 1,37,798 per 10 grams. In the international market, spot gold prices rose 2.3 per cent to $4,425 per ounce.
Silver prices also surged sharply after ending Friday's session on a subdued note. The March silver futures contract on MCX jumped by Rs 13,584 per kilogram to hit a day's high of Rs 2,49,900, up from the previous close of Rs 2,35,873.
Other precious metals also saw strong buying interest, with platinum gaining 5.3 per cent and palladium rising 5 per cent. The rally in precious metals was largely driven by heightened geopolitical tensions between the US and Venezuela.
Over the weekend, US forces carried out a military operation in Venezuela and captured President Nicolás Maduro and his wife. They were reportedly taken to New York and charged with narco-terrorism conspiracy and other criminal offences.
Despite Venezuela's weak economy and ongoing struggles with hyperinflation, the military action has triggered broader global concerns, boosting demand for safe-haven assets like gold and silver. Venezuela holds some of the world's largest crude oil reserves, making the situation geopolitically significant.
US President Donald Trump said on Saturday that Washington would "run" Venezuela until a political transition is completed. His remarks came just hours after US forces bombed the South American nation.
Trump also stated that American oil companies would invest billions of dollars to repair Venezuela's damaged oil infrastructure and extract vast amounts of oil wealth.
(With inputs from IANS)
