The Indian rupee opened slightly stronger at 95.52 against the US dollar on Wednesday, improving from Tuesday’s closing level of 95.63, while gold and silver prices jumped nearly 6 per cent on the Multi Commodity Exchange (MCX) as investors rushed towards safe-haven assets amid rising global uncertainty.
The sharp rally in precious metals comes shortly after the Indian government raised import duties on gold and silver, a move aimed at conserving foreign exchange reserves and controlling non-essential imports during ongoing geopolitical tensions in West Asia. Despite the higher duties, demand for gold continues to remain strong as investors look for safer investment options amid volatile global markets.
Jewellery industry executives believe the duty hike could reduce gold imports by around 10 to 15 per cent in the coming months. However, businesses remain optimistic about maintaining strong growth during FY27. Many retailers are also witnessing a shift in buying patterns, with customers increasingly exchanging old jewellery for new purchases instead of making fresh high-value buys.
Market experts expect elevated gold prices and higher import duties to continue for at least the next year if geopolitical tensions and global economic uncertainty remain high. Rising crude oil prices, pressure on global trade routes, and concerns around inflation are also contributing to increased demand for safe-haven investments like gold and silver.
Meanwhile, Asian stock markets traded mixed during early Wednesday sessions as enthusiasm around artificial intelligence and technology stocks cooled after recent rallies on Wall Street.
Japan’s Nikkei 225 remained mostly flat with a marginal gain of less than 0.1 per cent, while South Korea’s Kospi rose 0.9 per cent after recovering from sharp losses earlier this week.
Australia’s S&P/ASX 200 declined 0.3 per cent, while Hong Kong’s Hang Seng Index slipped 0.4 per cent. China’s Shanghai Composite remained largely unchanged during early trade.
Analysts say global markets are currently balancing optimism over economic recovery with concerns surrounding geopolitical risks, inflation pressures, and slowing momentum in technology-driven market gains. Investors are expected to closely monitor currency movement, commodity prices, and central bank signals over the coming weeks.
