Mumbai: Gold and silver prices rose on Thursday as investors moved toward safe-haven assets amid growing geopolitical tensions in the Middle East and rising inflation concerns. The conflict involving the United States, Israel and Iran has increased uncertainty in global markets, prompting investors to shift funds into precious metals.
On the Multi Commodity Exchange (MCX), gold April futures increased 0.31 per cent to Rs 1,62,018 per 10 grams during intra-day trade. At the same time, silver May futures climbed 1.50 per cent to Rs 2,69,551 per kilogram.
Earlier in the trading session, silver prices had jumped about 3.3 per cent while gold had gained more than 1 per cent before easing slightly due to mild profit booking by traders.
Global Market Movement
In international markets, precious metals also witnessed strong buying interest. Spot silver rose 1.2 per cent to USD 84.43 per ounce, while spot gold increased 0.8 per cent to USD 5,176.69 per ounce.
The ongoing conflict in the Middle East has entered its sixth day, creating concerns about disruptions in global energy supply routes. These risks have increased fears of higher inflation across global markets.
Dollar Movement and Oil Prices
Weakness in the US dollar also supported precious metal prices. The dollar index rose 0.22 per cent to 98.99, making gold and silver cheaper for buyers using other currencies.
Meanwhile, crude oil prices also moved higher. The April contract of benchmark crude on the Intercontinental Exchange was trading at USD 83.26 per barrel, up around 2.43 per cent.
Similarly, the April contract of West Texas Intermediate (WTI) on the NYMEX rose 2.63 per cent to USD 76.63 per barrel.
Rising Geopolitical Risks
Tensions escalated further after reports that a US submarine sank an Iranian warship near Sri Lanka, resulting in at least 80 deaths. The incident raised concerns that the conflict could expand further in the region.
Analysts believe continued disruptions to global energy supply routes, especially if the Strait of Hormuz is affected, could push inflation higher worldwide.
Price Outlook
Market analysts expect silver prices to move between USD 85 and USD 95 per ounce before potentially heading toward USD 100 levels. Gold could rally toward USD 5,500–USD 5,600 per ounce if geopolitical tensions continue.
Technically, analysts see support for gold at Rs 1,58,000 and Rs 1,62,000, while resistance levels are placed at Rs 1,75,000 and Rs 1,80,000. For silver, support is seen at Rs 2,50,000 and Rs 2,70,000, with resistance at Rs 3,00,000 and Rs 3,20,000.
Analysts also warn that rising energy prices could increase inflation and delay interest rate cuts by the US Federal Reserve, which may limit further gains in precious metals.
