Surge in Precious Metals Amid US-Iran Conflict and Weak Dollar
Synopsis
On March 6, gold and silver prices rose, influenced by ongoing US-Iran tensions and a declining dollar. As investors await the February jobs report, analysts foresee significant market implications. The conflict has raised inflation concerns while impacting energy supply stability.
Key Takeaways
Gold prices rose by 0.64% to Rs 1,60,700 per 10 grams.
Silver prices increased by 1.87% to Rs 2,67,100 per kg.
US-Iran tensions are raising inflation concerns.
The dollar index fell by 0.29% to 99.03.
Analysts forecast that interest rates will remain stable.
New Delhi, March 6 (NationPress) Prices for gold and silver experienced an increase on Friday following a slight decline in the previous session, influenced by escalating tensions in the Middle East and a weakening dollar. MCX gold for April delivery rose by 0.64 percent, reaching Rs 1,60,700 per 10 grams during intraday trading. In addition, MCX silver for May delivery surged by 1.87 percent to Rs 2,67,100 per kilogram.
Earlier in the day, silver prices on the MCX had soared by 2.6 percent while gold witnessed a rise of over 1 percent, followed by some profit-taking.
Investors are currently awaiting insights from the US jobs report for February, which is expected to be released later on Friday. Many traders anticipate that the US Federal Reserve will maintain interest rates at its upcoming policy meeting concluding on March 18, as indicated by various reports.
In international markets, spot silver experienced a slight increase to $82.26 per ounce, while spot gold remained stable on an intraday basis.
Experts noted that the US-Iran conflict has heightened inflation worries and decreased expectations for immediate rate cuts by the Fed.
As the conflict against Iran enters its seventh day, concerns regarding potential disruptions in energy supplies have emerged.
The dollar index decreased by 0.29 percent to 99.03, making dollar-denominated bullion more affordable for international buyers.
US President Donald Trump has continued to adopt a tough stance towards Iran and hinted at possible actions regarding Cuba.
Furthermore, US Defence Secretary Pete Hegseth stated that the US possesses sufficient munitions to sustain its military efforts for an extended duration.
Meanwhile, after a surge of over 15 percent since last week when the conflict between the US-Israel and Iran commenced, oil prices fell early on Friday as the US announced a 30-day waiver for Indian refiners to acquire Russian oil that has been stranded at sea.
The April contract for the benchmark Brent crude on the Intercontinental Exchange was trading at $84.21 per barrel, reflecting a decline of 1.52 percent from the previous close.
"Gold finds support at Rs 1,58,000 and Rs 1,56,600 per 10 grams, while resistance is seen at Rs 1,61,100 and Rs 1,62,800. For MCX silver, support is at Rs 2,57,700 and Rs 2,52,000 per kg, with resistance at Rs 2,66,000 and Rs 2,71,000," noted an analyst.
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Point of View
It's essential to recognize the interplay between geopolitical events and financial markets. The current situation in the Middle East highlights the potential volatility in commodities, particularly gold and silver, and reinforces the need for investors to remain cautious and informed.
NationPress
9 May 2026
Frequently Asked Questions
Why are gold and silver prices rising?
Prices for gold and silver are increasing due to tensions in the Middle East and a weaker dollar, which makes these precious metals more attractive to investors.
What impact does the US-Iran conflict have on the economy?
The US-Iran conflict raises inflation concerns and may disrupt energy supplies, which can lead to increased prices for commodities, including gold and silver.
What are analysts predicting for the Federal Reserve's interest rates?
Analysts widely expect the US Federal Reserve to keep interest rates unchanged during its upcoming policy meeting.
How did geopolitical events affect oil prices?
Oil prices surged over 15 percent since the beginning of the US-Israel and Iran conflict, but dropped recently due to a waiver allowing Indian refiners to purchase Russian oil.
What are the support and resistance levels for gold and silver?
Gold has support at Rs 1,58,000 and resistance at Rs 1,62,800, while silver's support is at Rs 2,52,000 and resistance at Rs 2,71,000.
