Gold rate today: Gold and silver saw renewed buying in Wednesday’s session, driven by softness in the US dollar and the widening tensions in the Middle East.
Gold, often deemed a safe-haven asset during times of crisis, gained $95 per troy ounce on Comex to $5,218 per ounce on 4 March. The May silver futures contract on Comex advanced $3.53 per troy ounce to reach the day’s high of $87.
The US dollar index, which measures the greenback against a basket of major currencies, pulled back to 98, making greenback-priced commodities more attractive for overseas buyers.
The precious metals continue to draw support from escalating conflict in the Middle East, which entered its fifth day.
Middle East tensions continue to escalate
The US and Israel have intensified their attacks on Iran, while Tehran is counterattacking, targeting military bases, civilian areas, and oil infrastructure across the Gulf region. The ongoing attacks have led to the closure of the Strait of Hormuz, disrupting energy supply flows.
However, President Donald Trump said on Tuesday that the US would provide risk insurance for all maritime trade through the Persian Gulf, in an effort to get tankers moving through the narrow passage.
Traders are worried that rising energy prices may ripple through the economy, pushing up costs at a time when investors are hoping inflation will ease enough to prompt the Federal Reserve to cut interest rates again later this year.
Markets have pushed back expectations for the next US Federal Reserve rate cut to September from earlier forecasts of July, although two 25-basis-point cuts are still priced in.
Investors have already begun reacting nervously to developments in the Middle East, offloading equities across major financial markets.
MCX gold jumps over ₹2,900 per 10g; silver up ₹10,000 per kg
In the domestic market, the April gold futures contract on MCX jumped ₹2,939 per 10 grams to the day’s high of ₹1,64,047, recovering over 50% of the losses from Tuesday’s crash of ₹5,000.
The May silver futures contract also staged a strong comeback, jumping ₹10,082 per kilogram to reach the day’s high of ₹2,75,400. On 2 March, the white metal came within striking distance of ₹3 lakh.
After a historic sell-off in late January, prices have staged a smart recovery, rising to ₹49,324 from recent lows.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
