Gold, Silver Rally on MCX as US–Iran Tensions Lift Safe-Haven Demand

Gold and silver prices surged sharply in Friday’s trade on the Multi Commodity Exchange of India (MCX), tracking heightened geopolitical tensions between the United States and Iran and a marginally weaker dollar.

MCX April gold futures rose 0.43 per cent to ₹1,60,399 per 10 grams during intra-day trade, while March silver futures jumped 3.05 per cent to ₹2,67,600 per kilogram.

What’s Driving the Rally?

The spike in precious metals comes amid:

• Extended US–Iran nuclear talks without concrete progress
• Fresh US sanctions targeting Iran’s oil and weapons exports
• Reports of US troop buildup and exchange of warnings
• A slight dip in the US dollar index, which eased 0.04 per cent to 97.76

The softer dollar made bullion cheaper for overseas buyers, boosting safe-haven demand. However, analysts note that recent strength in the dollar — which had hit four-week highs — may limit further upside in gold.

Additionally, fading expectations of imminent US interest rate cuts, following signs of resilience in the American economy, have capped gains in the yellow metal.

SEBI Revises ETF Valuation Norms

In a parallel development, the Securities and Exchange Board of India (SEBI) has revised the valuation framework for physical gold and silver held by exchange-traded funds (ETFs). The updated norms aim to align pricing with domestic market conditions and improve transparency across fund houses. The changes will take effect from April 1, 2026.

Technical Outlook

According to market analysts:

• MCX Gold is consolidating within the ₹1,55,000–₹1,65,000 range after correcting from record highs near ₹1,80,000–₹1,81,000. The broader uptrend remains intact, with current movement seen as a healthy pause.
• MCX Silver has strong structural support at ₹2,25,000–₹2,35,000. Sustained stability above this zone could push prices toward ₹3,00,000–₹3,25,000 in the medium term.

With geopolitical uncertainty persisting, precious metals are likely to remain sensitive to global developments and currency movements in the near term.