MUMBAI, India — Gold and silver prices advanced for a second straight session on Thursday, supported by rising geopolitical tensions, a cautious stance from the U.S. Federal Reserve, and the removal of additional margins on domestic precious metals futures.
Market sentiment was buoyed by reports that the U.S. Defense Department has deployed additional military assets to the Middle East, including warships, air defense systems, and submarines, amid the risk of a potential strike on Iran if diplomatic efforts falter.
On the Multi Commodity Exchange, gold April futures rose 0.22 percent intraday to Rs 1,56,100 per 10 grams, while silver March futures gained 0.29 percent to Rs 2,44,971 per kilogram.
In a move expected to increase trading activity, both the MCX and the NSE withdrew additional margins effective Thursday—3 percent on gold futures and 7 percent on silver futures across all contract variants. Market participants said the rollback is likely to encourage higher speculative participation and boost intraday volumes, adding upward pressure to prices.
However, the rally faced some headwinds from thin liquidity due to Lunar New Year holidays in mainland China and several other Asian markets.
In international markets, gold hovered near the $5,000 level, with dip buying evident ahead of the release of Federal Reserve meeting minutes. Mixed U.S. economic data have kept policymakers divided on the outlook for monetary policy, according to market participants.
Safe-haven demand remained firm amid escalating U.S.–Iran tensions, particularly concerns over maritime security in the Strait of Hormuz, stalled nuclear negotiations, and continued uncertainty linked to the Russia–Ukraine conflict. At the same time, Fed minutes indicated differing views, with some officials favoring further tightening if inflation remains sticky, while others signaled the possibility of easing later in the year.
The prospect of interest rates staying higher for longer strengthened the dollar and U.S. Treasury yields, limiting gains in bullion.
From a technical perspective, gold is seen finding support at Rs 1,54,400 and Rs 1,52,200, with resistance at Rs 1,56,800 and Rs 1,59,100. Silver has support levels at Rs 2,38,000 and Rs 2,32,800, while resistance is placed at Rs 2,49,000 and Rs 2,54,400.
Markets are now focused on upcoming U.S. personal consumption expenditures inflation data and GDP figures for clearer signals on the future direction of monetary policy. (Source: IANS)
