Gold and Silver Prices Surge on Dip Buying, but Remain on Track for Monthly Decline

Precious Metals Extend Gains Amid Ongoing Middle East Tensions

Precious metals continued their upward trend on Monday, 30 March, driven by renewed safe-haven demand due to escalating tensions in the Middle East. Despite this recent recovery, both gold and silver are poised to record monthly losses.

Gold and silver prices in the international market showed significant gains on Monday. May silver futures on COMEX rose by $2.21 to reach an intraday high of $74 per troy ounce, marking a second consecutive day of gains. However, the white metal is down a sharp 24% so far in March, and if it closes lower, which appears likely, it will mark its first monthly decline since April 2025.

April gold futures on COMEX also extended their gains, increasing by $119 to an intraday high of $4,611 per troy ounce. Nevertheless, bullion has fallen 13% so far this month, and with just one trading session left, it is heading for its first monthly decline since December 2024.

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US-Israel War with Iran Enters Fifth Week

The conflict between the US and Iran has entered its fifth week, with leaders showing little willingness to de-escalate. The impact of the conflict is becoming increasingly visible across nations, particularly in Asia, where countries are grappling with elevated crude oil prices.

In a recent development, US President Donald Trump said he could likely reach a deal to end hostilities in the Middle East but also warned of potential attacks on Iran's energy infrastructure, including the key Kharg Island terminal. Trump's statement came after Iran publicly dismissed direct talks with the US and proposed its own five-point plan to end the conflict, rejecting Trump's reported 15-point ceasefire proposal.

Regional Tensions Intensify

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The conflict continued with no clear end in sight, with Iran striking a key water and electricity facility in Kuwait and an oil refinery in Israel coming under attack. In response, Israel and the US launched a fresh wave of strikes on Iran.

Domestic Market Update

In the domestic market, April gold futures on MCX jumped ₹5,600 per 10 grams to hit an intraday high of ₹1,49,886, extending gains for the second straight session. Despite the late recovery, prices are on track for their first monthly decline since November 2024, down about 9% so far this month. However, year-to-date returns remain positive at 9.16%.

Silver prices on MCX surged ₹5,746 per kilogram to reach an intraday high of ₹2,33,700. The white metal is on track for its first monthly decline since April 2025.