Gold futures rise above Rs 1.63 lakh, silver volatile as West Asia tensions drive safe haven buying

Precious metals prices witnessed sharp volatility on Wednesday as escalating geopolitical tensions in West Asia drove renewed demand for safe-haven assets. Gold and silver opened the session higher on the Multi-Commodity Exchange (MCX) even as international prices remained under pressure following recent profit-booking.

April 2026 gold futures on MCX rose by over ₹2,157, or 1.33%, to trade at ₹1,63,265 per 10 grams. Silver futures for May 2026 delivery surged ₹5,682, or about 2.1%, to ₹2,71,000 per kilogram.

The gains came as markets reacted to intensifying US-Israeli air strikes on Iran and fears of a broader regional escalation, prompting investors to increase exposure to safe-haven assets such as gold and silver.

However, in international markets, precious metals showed signs of cooling after a strong rally earlier in the week. Spot gold was trading near $5,160 per troy ounce, more than 4% below Monday’s high of $5,400 per ounce. Silver, which typically exhibits higher volatility than gold, was trading near $84 per ounce, down over 11% from its recent peak of $95 per ounce.

On Tuesday, gold prices fell more than 4%, sliding to their lowest level since February 20. The decline was largely attributed to a stronger US dollar and fading expectations of near-term interest rate cuts by the US Federal Reserve. Rising inflation concerns linked to prolonged geopolitical tensions also weighed on sentiment.

Market participants say the broader trend for gold remains bullish despite short-term volatility.

Ponmudi R, CEO of Enrich Money, said COMEX gold continues to trade within a strong upward framework.

“COMEX Gold is currently trading within the $5,000–$5,400 range, maintaining a sequence of higher highs and higher lows. The broader bullish framework remains intact, supported by strong momentum and sustained breakout continuation from previous consolidation zones,” he said.

According to Ponmudi, strong buying interest is visible within the $5,100–$5,200 support zone, while the broader trend remains intact as long as prices hold above the $4,900–$5,000 levels.

“A sustained breakout above $5,400–$5,600 could open the door toward fresh record highs,” he added.

In the domestic market, MCX gold futures are trading in the ₹1,60,000–₹1,70,000 range, reflecting consolidation after the sharp rally triggered by the Middle East conflict.

“Strong buying interest is visible within the ₹1,58,000–₹1,62,000 demand zone. If prices sustain above this base and break past ₹1,70,000, momentum could extend toward ₹1,75,000–₹1,80,000,” Ponmudi said.

Gold, silver in geopolitical environment 

Analysts say the broader macro backdrop remains supportive for precious metals, even though prices appear technically overbought in the short term.

Rhona O’Connell, Head of Market Analysis for EMEA & Asia at StoneX, noted that the geopolitical environment continues to be a major driver for gold and silver.

“The escalation of the conflict in the Middle East has boosted gold and silver as well as pushing oil prices higher. The former reflect risk aversion, while oil is reacting to the possibility of supply disruptions,” she said.

She also highlighted additional factors supporting gold prices, including rising inflation pressures and growing uncertainty around US trade policies and tariffs.

With geopolitical risks, inflation concerns and global policy uncertainty all in play, analysts expect precious metals to remain volatile in the near term while maintaining a constructive medium-term outlook.

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