Commodity Insights

Spot Gold and Silver at Record Highs; Crude Holds Near $59

Gold and Silver: Safe-haven rush drives fresh peaks

• Spot Gold and Silver hit all-time highs above $4,690/oz and $94/oz respectively, as geopolitical uncertainty pushed investors toward safe-haven assets.

• On MCX, the rally lifted Gold and Silver to around Rs.145,000 per 10 grams and Rs.304,000 per kg.

What triggered the surge?

• The spike followed President Trump’s renewed push for the U.S. to acquire Greenland, coupled with threats of progressively higher tariffs on European allies until the deal is allowed.

• Europe is weighing retaliation, including tariffs on U.S. imports and use of the EU’s anti-coercion instrument. These steps are expected to be discussed at an emergency summit in Brussels on Thursday.

Silver remains volatile, but supply tightness supports

• Silver saw sharp swings last week: it briefly slipped toward $86/oz on delayed U.S. tariff action and curbs on Chinese trading activity, before rebounding to end near $90/oz.

• Tight physical supply continues to provide a strong floor, and silver is now holding above $93/oz.

Current levels and key supports

• Gold is trading around $4,670/oz while silver is sustaining above $93/oz.

• Support is coming from fears of a transatlantic trade confrontation and expectations of further U.S. dollar weakness amid elevated policy uncertainty.

Fed independence concerns add to unease

• Market anxiety has also risen as questions over Federal Reserve independence persist, with U.S. Supreme Court justices reviewing President Trump’s bid to remove Fed Governor Lisa Cook.

WTI Crude: Risk premium fades; prices steady near $59

• WTI crude is trading near $59/bbl as Iran-related tensions have eased and civil unrest has cooled following a government crackdown.

• Oil was volatile last week but finished largely unchanged around $59.4/bbl as immediate supply fears reduced.

Why crude cooled off

• The earlier geopolitical risk premium weakened after Trump indicated the killing of demonstrators had stopped, and after some U.S. personnel were withdrawn from Middle East bases.

• Earlier in the week, WTI had jumped to $62.4/bbl (highest since October) on fears of supply disruptions after Trump cancelled talks and announced 25% tariffs on countries trading with Iran.