New Delhi, March 4 Gold and silver prices climbed over 1 per cent on Wednesday amid escalating conflict between US‑Israeli forces and Iran driving safe haven demand.
MCX gold April futures gained 1.04 per cent to Rs 1,62,790 per 10 grams around 11.30 am on an intraday basis. Meanwhile MCX silver May futures gained 1.84 per cent to Rs 2,70,200 per kg.
Increased tensions in the Middle East and chances of energy disruption pushed investors toward safe‑haven assets and while concerns about inflation in the US led to investors considering prospects of the US Federal Reserve keeping interest rates unchanged for longer.
Gold and silver exchange-traded funds (ETFs), however, saw a steep correction on Wednesday despite gains in precious metals. Major silver ETFs dipped 7.12 per cent to 7.43 per cent, while Gold ETFs dropped between 3–3.87 per cent.
Spot gold rose around 1 per cent to $5,138.46 an ounce, while US gold futures for April delivery gained 0.5 per cent to $5,147.10. Gold has jumped 19 per cent year‑to‑date after surging 64 per cent in 2025, driven by geopolitical turmoil and strong central bank buying.
The dollar index surged 0.15 per cent to 99.20, making greenback-backed bullion expensive for buyers in overseas currencies, capping further gains in the yellow metal.
US President Donald Trump said American forces had struck numerous Iranian naval and air targets, while the Islamic republic targeted critical oil infrastructure across the Gulf region.
This led investors to pulling back from equities amid fears of wider disruption to energy markets and shipping routes.
WTI crude climbed above $75 a barrel, extending a two-day gain of approximately 11 per cent. Brent traded near $81 a barrel as the widening Middle East conflict and shipping disruptions through the Strait of Hormuz kept supply risks firmly in focus.
Investors remain keen on cues from US Manufacturing and Non-Manufacturing PMI, ADP Non-Farm Employment Change and Unemployment data for assessing direction of Federal Reserve policy.
"Gold has support at Rs 1,58,000 and Rs 1,62,000 while resistance at Rs 1,75,000 and Rs 1,80,000. MCX silver has support at Rs 2,50,000 and Rs 2,70,000, and resistance is at Rs 3,00,000 and Rs 3,20,000," an analyst said.
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