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Gold Surges, Markets Rally as Mideast Tensions Ease
25 Mar
Summary
- Indian stock markets closed higher for second consecutive day.
- Gold prices surged nearly 4 per cent, reaching $4,556 per ounce.
- Easing US-Iran tensions and crude oil price drop fueled market optimism.
Indian equity markets concluded Wednesday, March 25, 2026, with significant gains for the second session in a row. The BSE Sensex surged 1.63%, and the Nifty 50 advanced 1.72%. Broader market indices, including the Nifty Midcap 100 and Smallcap 100, outperformed blue-chip stocks. All sectoral indices closed in positive territory, with Consumer Durables, Realty, and PSU Banks leading the gains.
The primary catalyst for the market's upward movement was Iran's signal at the UN to allow non-hostile vessels through the Strait of Hormuz and unconfirmed reports of ceasefire negotiations. This eased geopolitical tensions, leading to a sharp 5% drop in Brent crude prices to the $94-$98 range.
Gold prices experienced a dramatic surge, climbing nearly 4% on MCX to $4,556 per ounce, while silver also gained approximately 4.8%. This safe-haven demand was amplified by reports suggesting the US was exploring ways to conclude the conflict with Iran. The India VIX, a measure of volatility, dropped 5.3% but remained elevated, indicating ongoing caution.
Despite the positive market sentiment, Foreign Institutional Investor (FII) selling persisted, and the Indian rupee weakened by 20 paise against the US dollar, closing at 93.97. Technically, the Nifty faces immediate resistance around 23,400-23,450, while Bank Nifty is challenged at 54,200-54,300. Markets will remain closed on Thursday, March 26, 2026, for Ram Navami, with participants closely watching US-Iran developments.
