Gold prices climbed sharply on Tuesday as investors sought the safety of precious metals amid renewed geopolitical tensions in the Middle East, with concerns that higher energy prices could rekindle inflationary pressures. On the Multi Commodity Exchange of India (MCX), gold futures for August delivery rose 0.57% to Rs 1,42,150 per 10 grams in early trade. Silver outperformed, with the September contract gaining 1.04% to Rs 2,20,668 per kilogram.

The rally mirrored moves in international markets, where bullion rebounded as investors stepped in to buy on price weakness while closely tracking the escalating confrontation between the United States and Iran. Traders are increasingly focused on whether renewed military action could disrupt energy markets, lifting crude oil prices and complicating the global inflation outlook.

Spot gold traded near the $4,000-an-ounce mark after slipping 0.2% in the previous session, according to Bloomberg data. The recovery reflected a renewed preference for safe-haven assets as geopolitical risks intensified.

Oil prices, however, edged lower after two consecutive sessions of gains, even as U.S. forces carried out a fresh wave of strikes on Iranian targets. The pullback in crude suggests markets are still weighing the likelihood of any sustained disruption to global energy supplies.

For precious metals investors, the immediate focus remains on developments in the Middle East, where any escalation capable of driving oil prices higher could reinforce gold’s appeal as a hedge against inflation and geopolitical uncertainty.