Thursday’s trading session in India’s MCX delivered a stark reminder of geopolitics’ grip on commodities. Precious metals gold and silver rocketed higher at open, propelled by Middle East flare-ups involving the US, Israel, and Iran, before succumbing to profit-booking.
Intraday by 12:13 PM, gold April futures eased 0.22% to 161,165 rupees/10g. Silver May lost 1.17% (3,109 rupees) to 262,451 rupees/kg. Session highs: gold 163,142 rupees, silver 274,251 rupees/kg—echoing Wednesday’s 3.3% silver spike and 1%+ gold rise.
Overseas, spot silver climbed 1.2% to 84.43 dollars/oz; gold +0.8% to 5,176.69 dollars/oz. Day six of clashes imperils oil routes, sending Brent crude to 83.26 dollars (+2.43%) and WTI to 76.63 dollars (+2.63%). A deadly US sub attack on an Iranian ship near Sri Lanka (80+ dead) fuels escalation worries.
Dollar index at 98.99 (+0.22%) cheapens metals for non-dollar buyers. Fading dollar demand amid oil/equity strength adds tailwinds. Analysts forecast silver steadying 85-95 dollars en route to 100; gold to 5,500-5,600 if Hormuz chokes.
Technical levels for MCX gold: support 158k/162k rupees, resistance 175k/180k. Silver: support 250k/270k, resistance 300k/320k rupees. Surging energy inflation risks could stall Fed easing, propping yields and constraining metals’ momentum.
As tensions simmer without resolution, traders watch for supply shocks. The volatile dance underscores precious metals’ role as tension barometers in an uncertain world.