Gold, silver rates: Gold and silver rates today rise up to 2.5% on Thursday, March 5, as both precious metals continue to draw support from war in the Middle East, which enters its sixth day without any indication of a resolution.
Spot gold rate today surged 1% to $5,187 per ounce, while spot silver prices gained as much as 2.5% to $85.12 per ounce, during the Asian trading hours, on Thursday.
What’s driving gold and silver prices?
Investors are rushing towards safer assets as US and Israeli forces continue airstrikes on Iran, while Tehran retaliates with missile attacks across parts of the region and targets key energy infrastructure. The continuous attacks have resulted in the shutdown of the Strait of Hormuz, disrupting global energy supply routes.
Donald Trump expressed confidence in the American military operation, and the US reportedly sank an Iranian warship in international waters. Iran, however, rejected as “pure falsehood” claims that its Ministry of Intelligence had approached Washington to negotiate an end to the hostilities.
At the same time, inflation worries eased somewhat after data showed the U.S. services sector grew at its fastest pace since mid-2022, supported by strong growth in orders and business activity.
The US dollar index, which tracks the greenback against a basket of major currencies, retreated to 98, making dollar-denominated commodities more appealing to overseas buyers.
Meanwhile, markets have deferred expectations for the next rate cut by the US Federal Reserve to September from earlier projections of July, though investors are still factoring in two 25-basis-point reductions this year.
Will bullions remain volatile amid the ongoing US-Iran war?
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, believes that volatility in gold and silver is expected to remain elevated due to the ongoing Western Asia conflict and failed US–Iran nuclear talks, which continue to keep uncertainty high in global markets.
Trivedi noted that gold remained highly volatile as CME prices saw a sharp sell-off from $5,400 to $5,000, before finding support and recovering towards $5,200.
On the other hand, Ponmudi R, CEO of Enrich Money, on the gold prices outlook, said that the broader bullish framework remains intact, supported by strong momentum and sustained breakout continuation from previous consolidation zones. Prices continue to hold firmly above key moving averages and prior resistance areas near earlier record highs, gradually edging higher and indicating strengthening bullish momentum.
“COMEX Gold is currently trading within the $5,000–$5,400 range, maintaining a sequence of higher highs and higher lows. Strong buying interest remains visible within the $5,100–$5,200 support band. As long as gold sustains above the $4,900–$5,000 support zone, the broader bullish trend remains intact. A sustained breakout above $5,400–$5,600 could open the door toward fresh record highs,” Ponmudi said.
On the silver prices outlook, he added that the broader bullish structure remains intact on higher timeframes. Prices have reclaimed major moving averages, signalling a transition from correction toward renewed strength. Strong buying interest is visible within the $76–$80 support band.
“COMEX Silver is currently trading in the $80–$90 zone, following a strong recovery from recent lows. A sustained move above $96–$100 could reignite momentum toward $110–$115, potentially retesting previous highs. Despite intermittent volatility, the medium- to long-term outlook remains constructive, supported by safe-haven demand and global geopolitical developments,” Ponmudi further opined.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
