Mumbai’s commodity markets witnessed a sharp rebound in precious metals on Wednesday, driven by escalating tensions in West Asia between Iran, Israel, and the United States. As stock markets tumbled amid geopolitical fears, investors flocked to gold and silver, pushing prices higher in early trading on the Multi Commodity Exchange (MCX).
Gold for April delivery jumped 1.44%, gaining 2,324 rupees to settle at 1,63,432 rupees per 10 grams. Silver futures for May delivery soared even more impressively, climbing 2.65% or 7,021 rupees to reach 2,72,339 rupees per kilogram. This surge comes after a brutal sell-off in the previous session, where gold had plunged 3% to 1,61,108 rupees and silver tumbled nearly 5% to 2,65,318 rupees.
The earlier drop was triggered by a strengthening dollar index, which hit a multi-month high of 99.33, coupled with U.S. 10-year bond yields surging past 4%. These factors typically pressure gold prices, but today’s rally underscores the overriding appeal of safe-haven assets amid conflict.
The conflict shows no signs of abating. Following the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, missile exchanges continue unabated. Israel claimed fresh strikes on Tehran and Beirut on Tuesday, while U.S. President Donald Trump warned the war could drag on for four to five weeks—or longer if necessary. Rising energy prices from the strife threaten to stoke inflation, potentially forcing the U.S. Federal Reserve to keep interest rates elevated.
Market experts urge caution. ‘Avoid building new positions in gold and silver today; wait for some stability,’ advised one analyst. On MCX, gold finds support at 1,59,100-1,57,700 rupees and faces resistance at 1,63,500-1,65,800 rupees. For silver, support lies at 2,57,700-2,51,500 rupees, with resistance at 2,71,000-2,78,800 rupees.
Long-term, precious metals retain a bullish outlook, but short-term volatility tied to the Middle East crisis demands patience from investors. As global markets brace for more uncertainty, gold and silver’s role as hedges against chaos remains firmly intact.