Gold and silver rise amid US–Iran war tensions and weaker dollar

Gold and silver prices advanced on Friday, recovering from a mild decline in the previous session as escalating tensions in the Middle East and a softer US dollar boosted demand for safe-haven assets.

On the Multi Commodity Exchange of India, gold futures for April delivery rose 0.64 per cent to Rs 1,60,700 per 10 grams during intraday trade. Silver futures for May delivery climbed 1.87 per cent to Rs 2,67,100 per kilogram.

Earlier in the session, silver prices had surged by as much as 2.6 per cent while gold gained more than 1 per cent before trimming some gains due to profit booking.

In international markets, spot silver edged slightly higher to around $82.26 per ounce, while spot gold remained largely unchanged during intraday trading.

Analysts attributed the strength in precious metals to heightened geopolitical risks following the ongoing conflict involving the United States, Israel and Iran, which has increased concerns about potential disruptions to global energy supplies.

The conflict has also intensified fears of rising inflation, prompting investors to seek refuge in bullion and scale back expectations of near-term interest rate cuts by the Federal Reserve.

Market participants are also awaiting the release of the US February employment report later on Friday, which could provide fresh clues on the outlook for monetary policy. Many traders expect the Federal Reserve to leave interest rates unchanged at its policy meeting scheduled to conclude on 18 March.

Meanwhile, the US dollar weakened slightly, supporting precious metal prices. The dollar index fell 0.29 per cent to 99.03, making dollar-denominated commodities such as gold and silver relatively cheaper for buyers using other currencies.

Geopolitical developments remain a key factor influencing commodity markets. US President Donald Trump has maintained a hardline stance towards Iran, while US Defence Secretary Pete Hegseth said Washington possesses sufficient munitions to continue military operations for an extended period.

Oil prices, which had surged more than 15 per cent since the conflict began, eased slightly on Friday after Washington announced a temporary waiver allowing Indian refiners to purchase Russian crude that had been stranded at sea.

The April contract for Brent crude on the Intercontinental Exchange was trading at about $84.21 per barrel, down 1.52 per cent from the previous close.

Analysts said gold is likely to find support at Rs 1,58,000 and Rs 1,56,600 per 10 grams, with resistance levels seen at Rs 1,61,100 and Rs 1,62,800. For silver, support is expected around Rs 2,57,700 and Rs 2,52,000 per kilogramme, while resistance levels are estimated at Rs 2,66,000 and Rs 2,71,000.

With IANS inputs