Gold Price Surges on MCX Amid Safe Haven Demand Amid Escalation of US-Iran Tensions

Gold and Silver Prices Update

MCX Gold April Futures: On Thursday, March 5, the MCX gold April futures rose by ₹1,600 (1%) to ₹1,63,142 per 10 grams. This increase is attributed to increased safe-haven demand amid the ongoing US-Iran war.

MCX Silver May Futures: The MCX silver May futures surged by nearly 2% to ₹2,70,501 per kg, while the MCX gold April futures contract ended at ₹1,61,525 per 10 grams, rising 0.30% in the previous session.

Dollar Index: The dollar index climbed by 0.20% to 98.98, making greenback-backed gold expensive in other currencies. This week, the dollar index has gained over 1% amid prospects of a delay in the US Fed's rate cut.

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US Fed Rate Expectations: According to CME Group's FedWatch tool, market participants expect the US central bank to maintain interest rates steady in March. Key data releases this week include the weekly U.S. jobless claims and U.S. employment data for February.

Gold and Silver Price Projections: Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week. Key support and resistance levels for gold and silver are as follows:

• Gold:
  • Support: ₹1,59,800, ₹1,57,700
  • Resistance: ₹1,63,200, ₹1,64,400
• Silver:
  • Support: ₹2,61,600, ₹2,55,500
  • Resistance: ₹2,71,000, ₹2,78,000

Trading Recommendation: Jain suggests booking profits in gold and silver at higher levels and avoiding buying at higher levels once gold starts sustaining above ₹1,64,400 and silver starts sustaining above ₹2,78,000 levels.

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