On the commodities front, COMEX gold rose 0.40% to $5,022.10 per ounce. COMEX silver gained 0.83% to $81.35 per ounce, with prices moving in a range of $80.05–$81.49 an ounce.
The uptick in precious metals comes even as broader financial markets attempt to stabilise. Asian equities advanced in early trade, while oil prices remained elevated amid the continuing conflict in the Middle East and concerns over supply disruptions.
Safe-haven demand in focus
Gold, traditionally seen as a safe-haven asset, tends to attract flows during periods of geopolitical stress and economic uncertainty. Investors often shift away from riskier assets such as equities in such phases, lending support to gold prices.
However, price movements are not always linear, and precious metals can see intermittent declines even during periods of conflict, reflecting changing market expectations.
Silver, in comparison, has a dual role, as both a safe-haven asset and an industrial commodity, linking its performance to sectors such as electronics and renewable energy alongside investment demand.
Portfolio hedge
According to Navy Vijay Ramavat, Managing Director at Indira Securities, gold and silver can help investors manage volatility in uncertain market conditions.
He said that precious metals typically show low or sometimes inverse correlation with equities, which allows them to act as a natural hedge during market downturns. However, he cautioned that investors should not wait for crises to allocate to these assets, as their role is to be part of a diversified portfolio beforehand.
Ramavat added that a 5–15% allocation to gold and silver, depending on individual risk appetite, can help stabilise portfolios during periods of heightened volatility. He also noted that investors may consider staggered investments rather than lump-sum allocations to manage price fluctuations.
Investment routes and strategy
Investors can gain exposure to gold and silver through physical holdings such as coins and bars, or through financial instruments including exchange-traded funds (ETFs), sovereign gold bonds and mutual funds tracking precious metals.
Experts emphasise that while equities remain the primary driver of long-term wealth creation, precious metals act as a form of portfolio insurance during uncertain periods.
–With agencies inputs