Gold and silver prices advanced sharply on Friday as escalating US-Iran tensions boosted safe-haven demand, while a marginal decline in the US dollar supported bullion prices.
On the Multi Commodity Exchange (MCX), gold April futures rose 0.43 per cent to Rs 1,60,399 per 10 grams around 12:30 am on an intra-day basis. Silver March futures outperformed, climbing 3.05 per cent to Rs 2,67,600 per kg.
The gains came against the backdrop of extended US-Iran nuclear negotiations that failed to produce a breakthrough, keeping geopolitical uncertainty elevated. The deployment of additional US troops and the exchange of warnings between Washington and Tehran intensified concerns. The United States also imposed fresh sanctions targeting Iran’s oil and weapons exports, further heightening tensions and driving investors towards precious metals.
The dollar index slipped 0.04 per cent to 97.76, making dollar-denominated bullion relatively cheaper for holders of other currencies. However, the limited decline followed a period of strong gains that had pushed the greenback to four-week highs, restricting the upside in gold.
Market sentiment also reflected fading expectations of imminent interest rate cuts in the United States. Signs of resilience in the US economy dampened hopes of near-term monetary easing, tempering aggressive bullish bets in bullion markets.
In a separate development, the Securities and Exchange Board of India revised the valuation framework for physical gold and silver held by mutual funds in their exchange-traded funds. The regulator stated that the changes aim to align pricing methodologies with domestic market conditions, enhance transparency and standardise valuation practices across asset management companies. The new norms will take effect from April 1, 2026.
Analysts observed that MCX gold futures are currently consolidating within the Rs 1,55,000 to Rs 1,65,000 range after retreating from record levels near Rs 1,80,000 to Rs 1,81,000. They indicated that the broader structural uptrend in gold remains intact, describing the present sideways movement as a consolidation phase rather than a reversal.
For silver, key structural support lies between Rs 2,25,000 and Rs 2,35,000 levels. Analysts said a sustained hold above this zone could open the path towards Rs 3,00,000 to Rs 3,25,000 over the medium term.
The price action underscores how geopolitical developments and currency movements continue to shape bullion markets. While safe-haven buying offered immediate support, macroeconomic signals from the United States and regulatory developments in India are also influencing investor positioning.
With negotiations between the US and Iran ongoing and global economic indicators under close watch, precious metals are likely to remain sensitive to external triggers in the near term.
