Escalating military standoffs in the Middle East sent precious metals markets into a frenzy on Thursday. Gold and silver prices soared in early trading as safe-haven buying surged amid US-Israel-Iran hostilities and looming inflation threats, only to reverse course later in the session.
At around 12:13 PM, MCX April gold contracts fell 0.22% to 161,165 rupees for 10 grams intraday. May silver futures shed 1.17% (3,109 rupees) to settle at 262,451 rupees per kg. Morning peaks saw gold at 163,142 rupees and silver at 274,251 rupees per kg, building on Wednesday’s gains where silver jumped 3.3% and gold over 1%.
Global spots reflected the buzz: silver up 1.2% to 84.43 dollars/oz, gold +0.8% at 5,176.69 dollars/oz. The conflict, now in its sixth day, threatens energy corridors, boosting crude prices—Brent at 83.26 dollars (+2.43%) and WTI at 76.63 dollars (+2.63%).
A US submarine’s strike on an Iranian vessel off Sri Lanka, claiming 80 lives, ratcheted up fears of broader war. Dollar index edged to 98.99 (+0.22%), aiding metal affordability. Oil surges and equity rallies have dented dollar safe-haven appeal.
Experts eye silver consolidating at 85-95 dollars before a 100-dollar run. Gold could hit 5,500-5,600 dollars if Hormuz disruptions persist. MCX gold supports: 158,000/162,000 rupees; resistance: 175,000/180,000. Silver: supports 250,000/270,000; resistance 300,000/320,000.
Inflation from energy shocks may push back Fed rate cuts, bolstering bond yields and tempering metals’ rally. Investors brace for volatility as diplomatic efforts falter and supply chains strain under geopolitical fire.