Silver Price Spikes ₹8,600 on MCX Amid Escalating US-Iran Tensions and Deteriorating Dollar

Precious Metals Market Report - March 6

Silver prices ticked higher on Friday, March 6, as investors adopted a cautious stance while evaluating the potential economic fallout from the escalating conflict in the Middle East. The decline in the US dollar also lent support to precious metals, making dollar-denominated bullion cheaper for buyers using other currencies.

Key Highlights

• Silver price on MCX jumped 2.6% or ₹8,600 to ₹2,68,991 per kg.
• Gold price is up 1% or ₹1,577 to ₹1,61,250 per 10 gram.
• In the international markets, Spot silver rose 0.1% to $82.26 per ounce.
• Spot gold was largely unchanged at $5,076.09 per ounce as of 0116 GMT.
• US gold futures for April delivery edged up 0.1% to $5,084.50.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Market Analysis

The escalating conflict in the Middle East has raised concerns about broader economic and energy market disruptions. The US Defense Secretary Pete Hegseth and Admiral Brad Cooper stated that the United States has sufficient munitions to sustain its military campaign for an extended period. The conflict has also rattled global energy markets, with oil and energy prices surging due to disrupted supply routes and shipping activity.

Economic Data

Initial jobless claims in the United States remained unchanged last week, while layoffs declined significantly in February. The figures suggest continued resilience in the US labour market. Market participants are widely expecting the Federal Reserve to leave interest rates unchanged at the conclusion of its two-day policy meeting on March 18.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Upcoming Events

Investors are now turning their attention to the upcoming US employment report for February, scheduled for release later in the day, which could provide further clues about the trajectory of the labour market and the Federal Reserve's future policy path.