On the MCX, gold’s April contract settled at Rs 1,62,104 per 10 grams, rising 1.50 per cent, while silver’s May contract closed at Rs 2,82,644 per kilogram, up 5.48 per cent on Friday.

The joint strike by the US and Israel on Iran on Saturday has sharply heightened geopolitical uncertainty, rattling investors and will mostlikely send commodity prices higher. US gold futures for April delivery climbed 1 per cent on Friday to close at $5,267.20 per troy ounce, marking an 11 per cent gain for February. Gold has now recorded price gains for eight consecutive months in the futures market.

Meanwhile, silver futures for May jumped 6.5 per cent, ending at $93.64 per troy ounce, with monthly gains exceeding 18 per cent, making it the 10th consecutive month of upward momentum. On the MCX, gold’s April contract settled at Rs 1,62,104 per 10 grams, rising 1.50 per cent, while silver’s May contract closed at Rs 2,82,644 per kilogram, up 5.48 per cent on Friday.

How do geopolitical tensions impact silver prices?–
Geopolitical tensions often drive investors toward safe-haven assets like silver. Increased demand during crises can lead to sharp price increases, as seen during conflicts. The recent Israel-Iran tensions have already resulted in significant price fluctuations for silver, highlighting its role as a hedge against uncertainty. Such dynamics suggest that as tensions escalate, silver prices may rise accordingly.

Safe-Haven Demand Drives Prices Higher

Experts highlight that major conflicts historically trigger strong inflows into safe-haven assets. “Elevated volatility and risk aversion are likely to keep investor sentiment supportive for gold in the near term,” said Hareesh V, Head of Commodity Research at Geojit Investments, according to a Mint report.

Jigar Trivedi, Senior Research Analyst at IndusInd Securities, added that COMEX gold is poised for further gains amid rising Middle East tensions. “Comex Gold may rise to $5,500 per troy ounce in case of the escalation of the US-Israel-led attack on Iran. Comex Silver is also expected to experience the same positive undertone, and $100 per troy ounce is the next resistance for the week,” he noted.

Harshal Dasani, Business Head at INVasset PMS, stressed in the report that the rally is not solely conflict-driven. “Central bank buying remains strong, real rates are gradually softening, and global diversification away from the dollar continues. In that backdrop, a move toward $6,000 over the next 12–18 months cannot be ruled out if geopolitical stress coincides with monetary easing and sustained ETF inflows,” he explained.

Potential Milestones For Gold And Silver

Anuj Gupta, a SEBI-registered market expert, observed that if COMEX silver breaks above $95 per troy ounce, silver prices may return to $100 per ounce, and Indian silver rates could touch Rs 3,00,000 per kg. For gold, he noted, “If gold breaks above this resistance, gold rates in India may touch Rs 1,68,000 to Rs 1,70,000 per 10 grams. Much will depend upon the longevity of the US-Iran war. If the war drags on like the Russia-Ukraine war, we may see gold rates in India approach its record high of Rs 1,80,000 per 10 grams.”

With geopolitical tensions showing no immediate signs of easing, analysts expect continued bullish momentum for precious metals, as investors increasingly view gold and silver as reliable hedges against uncertainty and market volatility.

Gold Rate In Dubai

Meanwhile, the gold rate in Dubai is expected to surge by as much as five per cent when markets reopen in Dubai and across global centres on Monday, driven by rising safe-haven demand amid escalating geopolitical tensions. “In such environments, gold quickly returns to the forefront as a strategic hedging instrument rather than a speculative asset. Gold prices are likely to post an immediate upside move at the market open, potentially with a price gap and gains ranging between 2 per cent and 3 per cent, driven primarily by institutional hedging flows ahead of retail participation. This behaviour reflects investors’ focus on capital preservation rather than the pursuit of short-term gains,” said Rania Gule, senior market analyst for Mena at xs.com, according to Khaleej Times.

In the UAE, 24K gold ended the week at Dh636.0 per gram. Meanwhile, 22K was priced at Dh589.0 per gram, 21K at Dh564.75, 18K at Dh484.0, and 14K at Dh377.5 per gram.

Courtesy : Times Now News