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Gold Nears Rs 1.70 Lakh, Silver Eyes Rs 3 Lakh on Safe-Haven Rush

Precious metals maintained a strong bullish trend this week, driven by escalating geopolitical tensions in the Middle East that spurred safe-haven buying. Gold futures on MCX broke past Rs 1,65,000, trading near Rs 1,69,880, while silver futures surged toward the Rs 3,00,000 level. Analysts note the trend remains constructive but warn of elevated volatility and key support zones that traders must watch. Momentum suggests gold could target Rs 1,70,000 if support holds, while silver has the potential to extend gains toward Rs 3,05,000.

Key Points: Gold & Silver Prices Surge Amid Geopolitical Tensions

  • Gold breaks Rs 1,65,000 resistance
  • Silver trades near Rs 3 lakh mark
  • Geopolitical tensions spur safe-haven demand
  • Crude oil surges on supply concerns
  • Analysts warn of volatility and key support levels
2 min read

Gold nears Rs 1.70 lakh, silver eyes Rs 3 lakh amid safe-haven buying this week

Gold nears Rs 1.70 lakh and silver targets Rs 3 lakh as Middle East tensions drive safe-haven buying. Get the latest MCX price outlook.

"Price action remains constructive, with the potential to extend toward Rs 3,00,000-Rs 3,05,000 - Ponmudi R"

Mumbai, March 7

Precious metals - gold and silver - maintained their bullish momentum this week, as escalating geopolitical tensions in the Middle East spurred safe-haven buying and heightened volatility across the broader commodities basket.

Despite intermittent intra-day pullbacks and profit-taking, the trend structure for precious metals remains decisively bullish.

Gold futures (April 2) on MCX extended their upward trajectory, breaking the Rs 1,65,000 resistance and trading at Rs 1,69,880. On Friday, they closed on a flat note at Rs 1,61,675, slightly below the previous close.

Silver futures (May 5) on MCX also continued their upward momentum, breaking above Rs 2,85,000 and trading near the Rs 3,00,000 level amid elevated volatility.

According to Ponmudi R, CEO of Enrich Money, gold and silver approached record highs before experiencing mild corrections, while crude oil surged sharply due to supply disruption concerns.

Traders have shown increased participation near key breakout levels, though elevated volatility underscores the need for disciplined risk management, he added.

Momentum indicators suggest sustained trend strength, with gold likely to continue toward Rs 1,70,000 if support holds, while a drop below Rs 1,57,000 could extend corrective pressure toward Rs 1,50,000.

The Rs 2,55,000-Rs 2,65,000 range now serves as a strong demand zone for silver, Ponmudi noted. "Price action remains constructive, with the potential to extend toward Rs 3,00,000-Rs 3,05,000, while a drop below Rs 2,60,000 could trigger short-term consolidation."

He added that selective upside participation remains favorable, but traders should exercise caution around recently tested support zones as macroeconomic and geopolitical risks continue to dominate market sentiment.

Meanwhile, COMEX gold futures traded firm this week, settling in the $5,158-$5,181 range, up from the prior close of $5,078-$5,099.

COMEX silver futures also saw strong upside, closing around $84.31, after hitting session highs of $85.34 and lows of $81.79.

- IANS

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Reader Comments

R
Rohit P
As a small-time trader, this volatility is a double-edged sword. Great opportunities but also huge risks. Ponmudi's advice about disciplined risk management is key. Don't get greedy chasing silver to 3 lakh, the correction can be sharp.
A
Aditya G
This is more than just wedding jewellery talk. It's a clear economic signal. When gold and silver rise like this, it often reflects a lack of confidence in other assets or currencies. The middle class's traditional savings instrument is becoming less affordable.
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Sarah B
Interesting to see the parallel with COMEX prices. The global and domestic trends are in sync. For long-term investors, maybe SIPs in gold ETFs are a better bet now than physical gold at these dizzying levels? Reduces the timing risk.
K
Karthik V
The article is informative but I wish it gave more perspective on what's driving the Middle East tensions specifically. That context helps retail investors understand if this is a short-term spike or a longer-term shift. Still, useful technical levels mentioned.
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Meera T
Silver at nearly ₹3 lakh! This impacts so many small industries and artisans who use it. The cost of everything from jewellery to decorative items will go up. Hope the government is looking at ways to cushion this impact for small businesses.

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