Mumbai, March 4: The ongoing conflict between Iran, Israel, and the United States in West Asia has led investors to seek safe-haven assets like gold and silver, causing a notable rise in their prices. During the early trading session on Wednesday, gold prices on the Multi Commodity Exchange (MCX) increased by over 1%, while silver saw a surge of more than 2%.
Gold futures for April delivery rose by 1.44%, gaining ₹2,324 to reach ₹1,63,432 per 10 grams. Meanwhile, May delivery silver futures climbed by 2.65%, increasing ₹7,021 to settle at ₹2,72,339 per kilogram.
This uptick follows a significant decline in the previous session, where April gold futures dropped by 3%, closing at ₹1,61,108 per 10 grams. Similarly, May silver futures fell nearly 5%, ending at ₹2,65,318 per kilogram. The declines were attributed to a strengthening dollar index and rising yields on U.S. 10-year bonds.
The dollar index has surged to a multi-month high of 99.33, while the yield on U.S. 10-year bonds has surpassed 4%. Investors are concerned that rising energy prices could lead to increased inflation, potentially forcing the U.S. Federal Reserve to maintain or raise interest rates.
There are no signs of de-escalation in the conflict between the U.S. and Iran. Following the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, missile attacks have continued. Israel claimed to have conducted new strikes in Tehran and Beirut on Tuesday. U.S. President Donald Trump indicated that the conflict could last four to five weeks, but it may extend longer if necessary.
Experts believe that the long-term trend for precious metals remains strong, but it may be wise to wait for market stability before making new positions. One expert advised against entering new positions in gold and silver during today’s session, suggesting that it is better to wait for some market stabilization.
According to market analysts, support levels for gold on the MCX are between ₹1,59,100 and ₹1,57,700, while resistance levels are between ₹1,63,500 and ₹1,65,800. For silver, support levels are identified at ₹2,57,700 to ₹2,51,500, with resistance levels ranging from ₹2,71,000 to ₹2,78,800.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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