Gold and silver prices saw significant increases on Thursday due to escalating tensions in the Middle East, prompting investors to turn to safe-haven assets. MCX gold April futures rose by 0.31% to Rs 1,62,018 per 10 grams intraday, while MCX silver May futures surged by 1.50% to Rs 2,69,551 per kg. Earlier, silver prices on MCX spiked by 3.3% and gold by over 1%, but later experienced a slight decline due to profit booking.
Spot silver rose by 1.2% to $84.43 per ounce, and spot gold climbed by 0.8% to $5,176.69 per ounce. The ongoing conflict involving the United States, Israel, and Iran, now in its sixth day, has disrupted global energy supply routes, leading to inflation concerns. Additionally, the weakening US dollar has posed challenges for bullion prices.
The dollar index increased by 0.22% to 98.99, making dollar-backed bullion more affordable for overseas buyers. The dollar’s sharpest decline in three years was influenced by rising oil prices and gains in global equities, reducing demand for the safe-haven currency. Analysts anticipate silver prices to consolidate between $85 and $95 before potentially reaching $100, while gold could rally towards $5,500–$5,600 levels if the Strait of Hormuz remains closed, disrupting global energy supplies.
In early trading, the April contract of the benchmark crude on the Intercontinental Exchange was trading at $83.26 per barrel, up by nearly 2.43% from the previous close. The April contract of West Texas Intermediate on the NYMEX also rose by 2.63% to $76.63 per barrel. A US submarine reportedly sank an Iranian warship near Sri Lanka, resulting in at least 80 casualties. This incident marked a significant escalation in the conflict, raising concerns about regional expansion.
According to an analyst, gold is supported at Rs 1,58,000 and Rs 1,62,000, with resistance at Rs 1,75,000 and Rs 1,80,000. For MCX silver, support levels are at Rs 2,50,000 and Rs 2,70,000, with resistance at Rs 3,00,000 and Rs 3,20,000. Analysts predict that higher energy prices may lead to inflation, potentially delaying interest rate cuts by the US Federal Reserve, thereby limiting upside potential for precious metals.
