Gold and silver prices saw significant increases on Friday as tensions between the US and Iran escalated and the US dollar slightly weakened. MCX gold April futures rose by 0.43% to Rs 1,60,399 per 10 grams, while MCX silver March futures surged by 3.05% to Rs 2,67,600 per kg.
The prolonged US-Iran nuclear talks with no clear breakthrough kept geopolitical tensions high, leading to a buildup of US troops and mutual warnings between the two nations. Additionally, the US imposed fresh sanctions on Iran, particularly targeting oil and weapons exports, which boosted the demand for safe-haven assets like precious metals.
The dollar index experienced a minor 0.04% decline to 97.76, making gold more affordable for buyers using other currencies. However, this decrease followed a period of substantial gains that pushed the dollar to four-week highs, limiting the upward momentum for gold.
Moreover, expectations of immediate interest rate cuts in the US diminished as signs of economic strength emerged. Meanwhile, the Securities and Exchange Board of India (SEBI) introduced new regulations for mutual funds to value physical gold and silver in their exchange-traded funds (ETFs), effective from April 1, 2026.
MCX Gold futures are currently consolidating within the Rs 1,55,000–Rs 1,65,000 range after a correction from its peak near Rs 1,80,000–Rs 1,81,000. Analysts suggest that the overall upward trend for gold remains intact, with the current sideways movement representing a temporary pause rather than a reversal.
Key support levels for MCX Silver are identified at Rs 2,25,000–Rs 2,35,000, and a sustained hold above this range could potentially lead to levels between Rs 3,00,000–Rs 3,25,000 in the medium term.
