Gold, silver ease on MCX after early surge as Middle East tensions fuel safe-haven demand

Gold and silver prices on the Multi Commodity Exchange of India (MCX) surrendered early gains and traded lower on Thursday as investors booked profits, even as international bullion prices continued to rise amid escalating geopolitical tensions in the Middle East.

Domestic bullion futures initially opened higher, tracking gains in global markets driven by safe-haven demand. However, prices later eased from intraday highs as traders locked in profits following the sharp rally seen in recent sessions.

MCX gold and silver

MCX gold rate today for April futures contracts opened higher by ₹1,225, or 0.75%, at ₹1,62,750 per 10 grams compared with the previous close of ₹1,61,525. The contract rose further to an intraday high of ₹1,63,142 before giving up part of its gains during the session.

Similarly, MCX silver price for May futures contracts opened higher by ₹4,340, or 1.63%, at ₹2,69,900 per kilogram against the previous close of ₹2,65,560. Silver prices surged to a high of ₹2,74,251 per kilogram, marking an intraday jump of as much as 3.2%, before moderating.

Overall, gold futures on MCX were trading nearly 0.67% higher at around ₹1,62,600 per 10 grams of 24-carat purity in early trade, while silver gained about 1.9% to ₹2,70,596 per kilogram.

Geopolitical tensions

The upward movement in bullion was supported by rising global uncertainty after tensions between the United States and Iran intensified sharply.

Reports indicated that a US submarine sank an Iranian warship off Sri Lanka, while NATO air defence systems intercepted a ballistic missile fired toward Turkey.

These developments have raised concerns about a broader regional conflict and potential disruption to oil shipments through the Strait of Hormuz — a key global energy chokepoint. The escalation has pushed investors toward safe-haven assets such as gold and silver.

In the international market, spot gold rose 0.8% to $5,176.69 per ounce in early trade, while US gold futures for April delivery gained 1% to $5,186 per ounce. The US dollar edged slightly lower, making dollar-denominated gold cheaper for holders of other currencies and providing additional support to bullion prices.

Gold has climbed nearly 20% so far this year and has repeatedly touched record highs amid persistent geopolitical risks and macroeconomic uncertainty.

Bullish on gold

Hareesh V, Head of Commodity Research at Geojit Investments Limited, said the overall outlook for gold remains constructive.

“We expect gold to recover further due to continued geopolitical tensions and supportive macro fundamentals. Silver may witness choppy trading as speculative activity remains high, but the broader bias remains mildly positive,” he said.

Data from the International Bullion and Jewellers Association (IBJA) also reflected strong underlying demand. On Wednesday, IBJA pegged the standard price of gold at ₹1,62,548 per 10 grams, while silver prices were 6.38% higher at ₹2,71,347 per kilogram.

Aksha Kamboj, Vice President at IBJA, said investors remain cautious amid the widening US–Israel–Iran conflict.

“The momentum for gold remains positive as the metal continues to trade higher and is well supported even at elevated levels. Although volatility may persist, the current trajectory suggests that gold is regaining upward momentum after a phase of consolidation,” she said.

Technical outlook for bullion

Market experts believe the broader technical structure for bullion remains bullish.

Ponmudi R, CEO of Enrich Money, said COMEX gold continues to trade within the $5,000–$5,300 zone with a pattern of higher highs and higher lows.

“Strong buying interest is visible in the $5,100–$5,200 support band. As long as prices hold above the $4,900–$5,000 zone, the broader bullish trend remains intact. A breakout above the $5,400–$5,600 range could open the path toward fresh record highs,” he said.

On the domestic front, he added that MCX gold futures are currently consolidating within the ₹1,60,000–₹1,70,000 range. A sustained breakout above ₹1,70,000 could potentially push prices toward the ₹1,75,000–₹1,80,000 zone.

Silver prices are also showing a constructive outlook despite near-term volatility. According to Ponmudi, COMEX silver is currently trading in the $80–$90 range with strong support near $76–$80.

“A sustained move above the $90–$95 resistance band could trigger a rally toward $100–$110 levels,” he said.

Meanwhile, MCX silver futures are trading within the ₹2,60,000–₹2,80,000 range. Analysts say a sustained hold above the ₹2,50,000–₹2,60,000 support zone could drive prices toward ₹2,80,000–₹3,00,000 in the coming sessions.

Despite intraday corrections driven by profit booking and a stronger dollar, analysts say the underlying trend for precious metals remains positive as geopolitical tensions continue to fuel safe-haven demand.