On Friday, gold and silver settled on a positive note in the international markets. Gold August futures contract closed at $3,452.80 per troy ounce, up 1.48 percent, and silver July futures contract settled at $36.355 per troy ounce, up 0.17 percent.
Domestic markets also saw positive movement. The gold August futures contract settled at Rs 1,00,276 per 10 grams with a gain of 1.91 percent and the silver July futures contract settled at Rs 1,06,493 per kg with a gain of 0.57 percent.
Geopolitical tensions are driving gold and silver prices due to investors' flight-safety instinct. Global equity markets plunged and crude oil prices surged, which also supported prices of precious metals.
“Gold prices closed above $3,450 per troy ounce and could test their previous lifetime high once again in the international markets, and silver prices could also follow gold in the upcoming sessions. Weakness in the rupee could also support prices of gold and silver. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions,” said Manoj Kumar Jain, director of Prithvi Finmart.