Mumbai’s commodity markets witnessed a sharp rally in gold and silver prices on Friday, fueled by escalating tensions between the United States and Iran, coupled with a slight dip in the dollar’s value. Traders flocked to these precious metals as safe-haven assets amid global uncertainties.
On the Multi Commodity Exchange (MCX), the April gold futures contract surged 0.30% during intra-day trading, touching a high of ₹1,60,719 per 10 grams. Silver futures for March delivery leaped over 3%, reaching ₹2,68,301 per kilogram at one point.
By around 2:13 PM, the April gold contract was trading at ₹1,60,354 per 10 grams, up 0.40% or ₹645. The silver contract for April 5 expiry climbed 2.69% or ₹6,981 to ₹2,66,650 per kilogram.
The backdrop to this surge is the stalled nuclear talks between Washington and Tehran, with no concrete progress in sight. Recent US military deployments have heightened geopolitical risks, prompting exchanges of warnings between the two nations. Fresh US sanctions on Iran’s oil and arms exports have further intensified pressures, driving demand for gold and silver.
A marginally weaker dollar index, down 0.04% to 97.76, made dollar-denominated bullion more affordable for foreign holders. This came after a recent dollar rally that had capped gold’s upside.
Market watchers note that expectations for US interest rate cuts have softened amid signs of economic resilience stateside. Meanwhile, India’s SEBI has revamped valuation norms for physical gold and silver held in mutual fund ETFs, aiming for greater transparency and uniformity. These changes kick in from April 1, 2026.
Analysts remain bullish. MCX gold, after correcting from record highs near ₹1,80,000-₹1,81,000, is consolidating between ₹1,55,000 and ₹1,65,000—a healthy pause in an otherwise strong uptrend. For silver, support holds firm at ₹2,25,000-₹2,35,000; a break above could propel it to ₹3,00,000-₹3,25,000 in the medium term.
As global tensions simmer, precious metals continue to shine as investors’ preferred refuge.