Gold and Silver Surge on MCX Amid Rising US-Iran Tensions; Experts Flag Fresh Commodity Trade Opportunities

Precious metals prices moved higher in domestic futures trading on Friday as geopolitical uncertainty and global currency movements influenced investor sentiment. Gains in bullion were recorded on the Multi Commodity Exchange of India (MCX), where both gold and silver contracts climbed during late-morning trade, supported by safe-haven demand triggered by escalating tensions between the United States and Iran.

Gold and Silver Prices Edge Up in Futures Market

Around 11:20 a.m., April gold futures on MCX were trading at ₹155,639 per 10 grams, reflecting a rise of ₹820 or 0.53 percent from the previous session. Silver futures for March delivery also posted strong gains, climbing ₹3,296 or 1.37 percent to trade at ₹244,689 per kilogram.

Market analysts attribute the upward movement primarily to heightened geopolitical concerns, which tend to increase demand for safe-haven assets such as gold and silver. Investors often shift funds into bullion when global tensions intensify, as precious metals are traditionally viewed as a store of value during uncertainty.

Stronger Dollar Caps Further Gains

Despite the upward trend, the rally in gold remained somewhat restrained due to a strengthening U.S. dollar. The dollar index rose to around the 98 mark, recording its fourth consecutive session of gains and advancing more than one percent for the week. This puts it on track for its strongest weekly performance since early October.

The currency’s strength has been supported by robust economic data from the United States and signals from the Federal Reserve suggesting a continued tight monetary stance. A stronger dollar typically weighs on gold prices because it makes dollar-denominated commodities more expensive for overseas buyers, potentially reducing demand.

Geopolitical Risks Boost Safe-Haven Demand

Reports circulating in international media suggest that tensions between Washington and Tehran have intensified, with speculation about possible military action over the weekend, although no official confirmation has been issued. Even unverified geopolitical threats can influence commodity markets, as traders quickly adjust positions to hedge against potential instability.

Historically, gold tends to benefit during periods of global uncertainty, including wars, political conflicts, or financial crises. Analysts say that as long as geopolitical risks remain elevated, downside pressure on bullion could stay limited despite currency headwinds.

Performance of Other Commodities

Movement in other commodities was mixed during the session:

• February copper futures rose ₹5, or 0.43 percent, to ₹1,166.20.

• March crude oil futures gained ₹47, or 0.78 percent, to ₹6,105.

• February natural gas futures declined ₹6, or 2.10 percent, to ₹270.40.

This divergence highlights how different asset classes react to global cues. While energy contracts often respond to supply-demand outlook and geopolitical risks, industrial metals like copper are more closely tied to economic growth expectations.

Expert Trading Calls for the Day

Market strategist Manoj Kumar Jain from Prithvi Finmart identified potential short-term opportunities in select commodity contracts.

He recommends buying MCX Gold Mini (March) near ₹152,200 with a stop-loss at ₹150,950 and a target price of ₹154,500. For traders looking at base metals, he suggests selling MCX Nickel (March) near ₹1,600 with a stop-loss at ₹1,636 and a downside target of ₹1,530.

Such trading calls are typically based on technical indicators, price patterns, and global cues rather than long-term fundamentals, and they are generally intended for short-term traders rather than long-term investors.

Market Outlook

Commodity markets are likely to remain sensitive to international developments, especially geopolitical news and central bank signals. Investors will closely watch currency movements, interest-rate expectations, and global political headlines for further direction.

While safe-haven demand may continue to support bullion prices in the near term, analysts caution that sharp fluctuations are possible if macroeconomic conditions or geopolitical narratives shift suddenly.

Disclaimer: Investment and trading involve risk. Market views and trade ideas reflect analysts’ personal opinions and should not be considered financial advice. Investors should consult certified financial professionals before making any investment decisions.