Gold and Silver Prices Update

As of Tuesday, March 3, gold prices have continued their upward trend for the fifth consecutive session, while silver rates surged nearly 2%. The spot gold rate is now trading at $5,738 per ounce, a 1.26% increase from the previous day. In contrast, spot silver prices rose 1.92% to $90.56 per ounce during Asian trading hours, after falling 6% on Monday.

Market Drivers

Escalating tensions in the Middle East, particularly the US military campaign against Iran, have fueled inflation concerns in the US, pressuring Treasury prices and increasing expectations that the Federal Reserve may keep interest rates steady for an extended period. According to a Bloomberg report, markets are now factoring in a potential rate cut by September, later than earlier projections.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Gold and Silver Outlook

Despite elevated interest rates, which can weigh on gold since it offers no yield, they may also strengthen its appeal as a store of value during periods of economic uncertainty. According to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., the broader bias for both metals remains constructive, with corrections likely to be shallow and temporary. Kothari believes that as long as gold sustains above the $5,200 zone, the momentum favors a move toward $5,450–5,600 in the near term.

Short-term Volatility

Sharp profit-booking could be witnessed amid rising volatility, according to Gaurav Garg, Research Analyst at Lemann Markets Desk. In the event of further escalation, gold could test ₹1,70,000 per 10 grams, and silver may approach ₹3,00,000 per kg in the near term. However, any diplomatic breakthrough could prompt sharp profit-booking, given the rapid 3–6% rally recorded within a short span.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities