New Delhi: Precious metals prices jumped sharply on Thursday as escalating conflict in the Middle East pushed investors toward safe-haven assets, amid rising inflation concerns and global energy supply risks. 

On the Multi Commodity Exchange (MCX), gold April futures rose 0.31 per cent to ₹1,62,018 per 10 grams, while silver May futures gained 1.50 per cent to ₹2,69,551 per kg. Earlier, silver had surged over 3.3 per cent, and gold rose more than 1 per cent before mild profit booking.

Global spot prices

Globally, spot silver climbed 1.2 per cent to $84.43 per ounce, and spot gold increased 0.8 per cent to $5,176.69 per ounce.

The spike comes as the conflict between the United States, Israel, and Iran enters its sixth day, disrupting energy supply routes and stoking inflation worries. Meanwhile, a weaker US dollar has made bullion cheaper for investors using foreign currencies.

The US Dollar Index rose 0.22 per cent to 98.99, after recording its steepest fall in three sessions, amid rising oil prices and gains in global equities, reducing demand for the safe-haven currency.

Analyst outlook

Analysts expect silver prices to consolidate between $85 and $95 per ounce before moving toward $100, while gold could rally toward $5,500–$5,600 per ounce if the Strait of Hormuz remains disrupted, affecting global energy supplies.

Crude oil and energy impact

Crude oil prices rose sharply in early trade:

  • ICE Brent crude April contract: $83.26 per barrel, up 2.43 per cent
  • NYMEX WTI April contract: $76.63 per barrel, up 2.63 per cent

A recent escalation occurred when a US submarine sank an Iranian warship near Sri Lanka, reportedly killing at least 80 personnel, further heightening geopolitical risks in the region.

Also Read| Asian shares jump following Wall Street gains; oil prices spike on Iran war fears

Support and resistance levels

Analysts indicated that gold has support at ₹1,58,000 and ₹1,62,000, with resistance at ₹1,75,000 and ₹1,80,000. For silver, support lies at ₹2,50,000 and ₹2,70,000, while resistance is projected at ₹3,00,000–₹3,20,000.

Rising energy prices and persistent geopolitical tensions are expected to sustain inflationary pressures, potentially delaying US Federal Reserve interest rate cuts and supporting US Treasury yields, which may limit further upside in precious metals in the near term.

IANS