Gold and silver prices extended their gains on the Multi Commodity Exchange (MCX) on Tuesday as renewed geopolitical tensions in the Middle East boosted demand for safe-haven assets. The rally followed fresh US military strikes on Iran, which heightened concerns over global energy supplies and inflation. Investors also continued to monitor developments in the ongoing conflict and their potential impact on financial markets.

At around 9:05 am, the MCX gold August futures contract climbed 1.08 per cent, or Rs 1,542, to Rs 1,44,301 per 10 grams. Meanwhile, the MCX silver September futures contract rose 1.14 per cent, or Rs 2,554, to Rs 2,26,333 per kilogram. The gains reflected increased buying interest in precious metals as uncertainty surrounding the geopolitical situation intensified.

In international markets, gold rose by as much as one per cent to trade above $4,100 per ounce after posting gains of nearly two per cent in the previous session. Silver also advanced, trading close to $60 per ounce. Market participants attributed the rally to persistent Middle East tensions, elevated US Treasury yields and continued uncertainty over the direction of the conflict between the United States and Iran.

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The latest surge came after US President Donald Trump ruled out the possibility of immediate negotiations with Iran following another round of military exchanges near the Strait of Hormuz. The conflict has now entered its tenth day, with diplomatic efforts continuing in an attempt to revive negotiations. Crude oil prices also moved higher as investors weighed the risk of further supply disruptions in one of the world's most important energy-exporting regions.

Analysts said investors are balancing the impact of rising energy prices against softer US economic data while looking for clues on the US Federal Reserve's future interest rate decisions. Higher interest rates generally reduce the appeal of non-yielding assets such as gold, but geopolitical uncertainty has continued to support demand for precious metals despite expectations of tighter monetary policy.

With tensions in the Middle East showing little sign of easing, traders are expected to closely monitor geopolitical developments, oil price movements and central bank signals in the coming days. Any further escalation in the conflict or changes in the global economic outlook could influence the direction of gold and silver prices, which continue to attract investors seeking stability during periods of heightened uncertainty.

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