Gold, Silver Prices Rise Over 1% As US–Iran Conflict Drives Safe-Haven Demand

Gold and silver prices climbed more than 1 per cent on Wednesday as escalating conflict involving the United States and Iran drove investors towards safe-haven assets.

On the domestic bourse, MCX gold April futures rose 1.04 per cent to ₹1,62,790 per 10 grams, while MCX silver May futures gained 1.84 per cent to ₹2,70,200 per kilogram in intraday trade.

Heightened tensions in the Middle East and fears of energy supply disruptions lifted demand for precious metals.

At the same time, concerns over persistent US inflation increased expectations that the Federal Reserve may keep interest rates higher for longer.

In international markets, spot gold advanced about 1 per cent to $5,138.46 an ounce, while US gold futures for April delivery gained 0.5 per cent to $5,147.10.

However, gold and silver exchange-traded funds (ETFs) saw sharp corrections despite the rally in bullion prices.

Major silver ETFs fell between 7.12 and 7.43 per cent, while gold ETFs declined 3 to 3.87 per cent.

The dollar index rose 0.15 per cent to 99.20, making bullion costlier for overseas buyers.

WTI crude climbed above $75 a barrel, and Brent crude traded near $81 amid Middle East tensions, fuelling inflation concerns and boosting demand for gold.

Investors are watching the US PMI and employment data for Federal Reserve cues.

Analysts see gold support at ₹1,58,000–₹1,62,000 and resistance at ₹1,75,000–₹1,80,000, while MCX silver has support at ₹2,50,000–₹2,70,000 and resistance at ₹3,00,000–₹3,20,000.

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