Gold Price Rises on MCX Amid Heightened Geopolitical Tensions and Weakening US Dollar

Gold and Silver Prices Surge on MCX Amid Geopolitical Uncertainties

Key Figures:

• ₹1,61,072: MCX gold April futures price per 10 grams
• ₹1,100: Increase in MCX gold April futures price
• 0.70%: Increase in MCX gold April futures price
• ₹2,67,990: MCX silver March contracts price per kg
• ₹7,200: Increase in MCX silver March contracts price
• 3%: Increase in MCX silver March contracts price
• $5,211.80: U.S. gold futures for April delivery price

Market Update

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

On February 25, gold price on the Multi Commodity Exchange (MCX) surged due to increased geopolitical uncertainties, a decline in the US dollar, and healthy spot market demand. MCX gold April futures climbed by ₹1,100, or 0.70%, to ₹1,61,072 per 10 grams. MCX silver March contracts jumped by ₹7,200, or nearly 3%, to ₹2,67,990 per kg.

International Market

International gold prices also rose as investors sought safe-haven buying amid persisting US-Iran tensions and uncertainty over US tariffs. U.S. gold futures for April delivery climbed by almost 1% to $5,211.80. The dollar index eased by over 0.10% to 97.70, making gold slightly cheaper for buyers in overseas currencies.

Market Sentiment

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

News flows about the US-Iran situation continue to weigh on market sentiment, driving investors to safe-haven gold. Iran and the US are set to hold the third round of nuclear talks in Geneva on February 27. The uncertainty over US tariffs remains a key positive trigger for precious metals, with the US collecting new 10% tariffs on imports and plans to increase them to 15% soon.

Forecast

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. He suggests buying gold on dips around ₹1,59,000 and ₹1,57,000 with a stop loss below ₹1,55,500 for the targets of ₹1,61,000 and ₹1,62,500.