The gains come as investors remain cautious about the escalating conflict in the Middle East and its potential economic fallout. Concerns that tensions involving the US, Israel and Iran could persist have prompted a shift toward traditional safe-haven assets such as precious metals.
At the same time, broader financial markets have remained under pressure. Asian equities are heading for their steepest weekly decline in six years, while oil prices are poised for their biggest weekly jump in about three years as geopolitical risks raise concerns over supply disruptions.Rising global bond yields and a stronger US dollar, however, have limited gains in bullion. The benchmark 10-year US Treasury yield has risen sharply this week, reflecting expectations that central banks may maintain a hawkish stance if higher energy prices feed into inflation.
In the domestic market, gold prices had declined sharply in the previous session. Gold of 99.9% purity in the national capital fell ₹7,600 to ₹1.65 lakh per 10 grams on Thursday (March 5), largely due to profit-booking after recent gains.Silver, however, moved higher in derivatives trade.
On the Multi Commodity Exchange (MCX), silver for May delivery rose ₹1,844, or 0.69%, to ₹2.67 per kilogram, with a business turnover of 6,353 lots.
Analysts said the white metal tracked gains in global markets as geopolitical tensions boosted safe-haven demand.
“Silver and gold rebounded from recent lows as safe-haven demand returned amid rising geopolitical and trade tensions,” said Renisha Chainani, head of research at Augmont.
Analysts say precious metals remain sensitive to a mix of geopolitical developments, currency movements and expectations around the US Federal Reserve’s interest-rate trajectory, which could determine the next directional move in bullion prices.
–With agencies inputs
