Gold and silver prices increased on Friday following a slight decline in the previous session, driven by tensions in the Middle East and a weaker dollar. MCX gold April futures rose by 0.64% to Rs 1,60,700 per 10 grams intraday, while MCX silver May futures surged by 1.87% to Rs 2,67,100 per kg. Silver prices on MCX had earlier jumped by 2.6%, with gold also advancing over 1% due to profit booking.
Investors are awaiting cues from the US February jobs report, expected later on Friday, amid widespread anticipation that the US Federal Reserve will maintain interest rates at its upcoming policy meeting on March 18. Spot silver saw a marginal increase in international markets to $82.26 per ounce, while spot gold remained flat intraday.
Analysts noted that the US-Iran conflict has heightened inflation concerns and reduced expectations of immediate Fed rate cuts. With the ongoing war against Iran entering its seventh day, there are worries about potential disruptions in energy supplies. The dollar index decreased by 0.29% to 99.03, making dollar-backed bullion more affordable for overseas buyers.
US President Donald Trump continued his assertive stance towards Iran and hinted at plans involving Cuba. Additionally, US Defence Secretary Pete Hegseth stated that the US possesses adequate munitions for an extended campaign. Meanwhile, oil prices, which had surged by over 15% since the US-Israel and Iran conflict began last week, experienced an early drop on Friday following the US announcement of a 30-day waiver for Indian refiners to buy Russian oil stranded at sea.
The April contract of benchmark Brent crude on the Intercontinental Exchange was trading at $84.21 per barrel, marking a 1.52% decline from its previous close. An analyst mentioned that gold has support levels at Rs 1,58,000 and Rs 1,56,600 per 10 grams, with resistance at Rs 1,61,100 and Rs 1,62,800. For MCX silver, support levels are at Rs 2,57,700 and Rs 2,52,000 per kg, while resistance is at Rs 2,66,000 and Rs 2,71,000.
