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Gold approaching $5000 and Silver towards $100 – AUGMONT BULLION REPORT

Bullion hits historic peaks as geopolitical uncertainty and expectations of a dovish Fed push Gold toward $5,000 and Silver near the $100 milestone.

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Precisions metals reached historic heights this week as gold neared the psychological $5,000 barrier, touching $4,970 (INR. 1,59,200), while silver surged to $99.2 (INR. 3,40,000). This rally, the strongest weekly performance for the duo since March 2020, is being fueled by a complex cocktail of geopolitical maneuvers and shifting economic policies. Market sentiment was jolted by U.S. President Donald Trump’s claim of securing permanent access to Greenland via a NATO deal—a move that remains shrouded in ambiguity as Denmark maintains its sovereignty—and his sudden cancellation of proposed European tariffs.

AssetRecent High (USD)Indian Price (Approx.)Drivers
Gold$4,970₹1,59,200Safe-haven demand, Geopolitics
Silver$99.2₹3,40,000Short squeeze, China export bans

The upward momentum is further bolstered by growing expectations of monetary easing, with investors betting on a dovish appointment for the next Federal Reserve Chair. Silver, in particular, has seen its gains amplified by a historic short squeeze and heightened retail participation, compounded by supply anxieties following China’s tightening of export controls. Together, these factors have solidified the safe-haven appeal of bullion in an increasingly volatile global landscape.

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International News

Middle East  conflict halts India-UAE diamond trade

Industry leaders warn of prolonged caution in markets, with potential shifts to alternative routes like Hong Kong under scrutiny.

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Iran has launched over 1,300 drones and 229 missiles at the UAE since February 28, 2026, in retaliation for US and Israeli strikes that killed over 1,000 people, including Iran’s Supreme Leader Ali Khamenei. UAE air defenses intercepted most threats, but the attacks caused 3 deaths and 112 injuries, with debris damaging civilian areas.

Trade Dependencies

The UAE supplies more than two-thirds of India’s rough diamond imports, making it the dominant source for the country’s diamond processing industry. India, in turn, provides over 90% of the UAE’s polished diamond imports, underscoring the bilateral trade’s critical role in global diamond flows.

Logistics Breakdown

Nearly all flights between India and the UAE stand cancelled amid the conflict, except limited repatriation services, crippling air cargo routes. Daily diamond export parcels—typically 400 to 500 from India to UAE—have stopped entirely due to airspace closures and flight suspensions.

Industry Impact

Exports and imports from the Middle East have ground to a standstill, with no logistics available to move goods,

The Dubai Multi Commodities Centre (DMCC), hub of the Dubai Diamond Exchange, shifted to remote operations and declined further comment on disruptions.

Broader Implications

The Middle East accounts for nearly a quarter of India’s $30 billion annual gems and jewellery exports, amplifying the economic fallout for Mumbai’s diamond trade ecosystem. Industry leaders warn of prolonged caution in markets, with potential shifts to alternative routes like Hong Kong under scrutiny.

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