Commodities traded on the Multi Commodity Exchange (MCX) witnessed a strong surge in early trade, driven by escalating tensions in the Middle East that sparked a global risk-off sentiment.
Morning Session Highlights
- Gold Futures climbed 3.13% to ₹1,67,176 per 10 grams.
- Silver Futures advanced 2.85% to ₹2,90,693 per kg.
- Crude Oil Futures jumped 5.81% to ₹6,446 per barrel.
- Natural Gas Futures rose 2.06% to ₹267.7 per MMBtu.
What’s Fueling the Rally?
The broad-based gains follow heightened geopolitical tensions after major US-Israel strikes on Iran and subsequent retaliatory developments. Market participants are closely monitoring the risk of potential disruptions in the Strait of Hormuz — one of the world’s most critical energy transit chokepoints.
Approximately 15–16 million barrels per day of crude oil and petroleum products, along with nearly 20% of global LNG trade, pass through the strait. Although shipping routes remain officially open, vessel rerouting and rising freight costs have amplified supply concerns.
Precious Metals Shine on Safe-Haven Demand
Gold and silver rallied as investors sought refuge in defensive assets amid rising geopolitical uncertainty. Gold, already hovering near record highs this year, extended its gains on safe-haven buying and lingering inflation concerns.
Silver followed gold’s upward trajectory, supported by both investment demand and overall strength in the commodity complex.
Energy Segment Leads the Charge
Crude oil posted the sharpest gains on MCX as traders factored in the possibility of supply disruptions. Natural gas also moved higher amid concerns over LNG shipment risks and increased global energy volatility.
Markets are likely to remain highly sensitive to further geopolitical developments, shipping activity in the Gulf region, and upcoming global macroeconomic data releases.