Gold and silver prices surged significantly on Thursday amid escalating conflict in the Middle East.
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NEW DELHI — Gold and silver prices surged significantly on Thursday amid escalating conflict in the Middle East, pushing investors toward safe‑haven assets.
MCX gold April futures gained 0.31 per cent to INR 1,62,018 per 10 grams on an intra-day basis. Meanwhile MCX silver May futures gained 1.50 per cent to INR 2,69,551 per kg.
Earlier in the day silver prices on MCX had jumped 3.3 per cent while gold advanced over 1 per cent but later dipped over mild profit booking.
Spot silver jumped 1.2 per cent to $84.43 per ounce, while spot gold climbed 0.8 per cent to $5,176.69 per ounce.
Conflict between the United States, Israel and Iran entering the sixth day and disrupted global energy supply routes heightened inflation concerns. Further, weakness in the US dollar acted as headwinds to bullion.
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The dollar index surged 0.22 per cent to 98.99, making greenback-backed bullion cheaper for buyers in overseas currencies. The dollar recorded its steepest fall in three as rising oil prices and gains in global equities reduced demand for the safe-haven currency.
Analysts predicted that silver prices could consolidate between $85 and $95 before resuming momentum toward $100, while gold rallied toward $5,500–$5,600 levels if the shutdown of the Strait of Hormuz continues, disrupting global energy supply routes.
In the early morning trade, the April contract of the benchmark crude on the Intercontinental Exchange was trading at $83.26 per barrel, up by almost 2.43 per cent from its previous close.
The April contract of West Texas Intermediate on the NYMEX went up 2.63 per cent to $76.63 per barrel.
"Gold has support at INR 1,58,000 and INR 1,62,000 while resistance at INR 1,75,000 and INR 1,80,000. MCX silver has support at INR 2,50,000 and INR 2,70,000, and resistance is at INR 3,00,000 and INR 3,20,000," an analyst said.
Analysts forecast higher energy prices causing inflation and delaying potential interest rate cuts by the US Federal Reserve, thereby supporting US Treasury yields in the near term, capping upside in precious metals.