Gold Price Rises Amid Geopolitical Tensions

Gold Price (MCX): ₹1,56,740 per 10 grams (up 0.5% from previous session) Silver Price (MCX): ₹2,59,569 per kg (up 1% from previous session)

In the domestic futures market, gold prices rose on Tuesday, March 17, due to heightened geopolitical risks stemming from the US-Iran war and volatility in the US dollar. The MCX gold April contracts rose by more than half a percent, while MCX silver May futures climbed by over 1% in early deals.

Market Analysis

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The ongoing US-Iran war has led to a chaotic situation in the Middle East, with Iranian drones attacking Dubai, Abu Dhabi, and Fujairah. This has resulted in crude oil prices trading above $100 per barrel, causing concern among investors about potential inflationary pressures and a dent in economic growth. The US dollar is trading volatily ahead of the US Federal Reserve's policy decision on March 18, which is expected to keep rates unchanged.

Key Levels to Watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,964 and $4,920, while resistance is at $5,055 and $5,084 per troy ounce. Silver has support at $78 and $74.40, while resistance is at $84 and 86.40 per troy ounce.

Trading Recommendations

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Manoj Kumar Jain suggests traders trade in a given trading range of gold and silver and strictly for intraday ahead of the Fed meetings, but long-term investors could accumulate in dips in a SIP mode. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, expects MCX gold April futures to rebound to ₹1,57,500 in tandem with the global trends, while MCX silver May futures are expected to stay positive.