Silver and gold prices rebounded in futures trade on Wednesday, tracking firm demand in the international markets as investors sought safe-haven assets amid escalating tensions in the west Asia after the US administration signalled that military operations against Iran could last for a month or longer.
On the Multi Commodity Exchange (MCX), silver for May delivery climbed ₹6,410, or 2.42 per cent, to ₹2,71,728 per kilogram. During the intraday session, it appreciated by ₹8,515, or 3.21 per cent, to hit a high of ₹2,73,833 per kg.
On Tuesday, the metal had closed lower by ₹13,163, or 4.73 per cent, to ₹2,65,318 per kg from Monday’s closing level of ₹2,78,481 per kg.
Gold futures for April contract increased ₹1,872, or 1.16 per cent, to ₹1,62,980 per 10 grams after touching an intraday high of ₹1,63,800 per 10 grams.
In the previous market session, the yellow metal had settled lower at ₹1,61,108 per 10 grams, down ₹4,966.
Gold and silver both have inclined significantly on Wednesday, with the yellow metal climbing by 1.5 per cent to trade over ₹1.63 lakh per 10 grams and on the other side white metal has surged by nearly 3 per cent, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
“This rise in both metals can be considered as a classic flight-to-safety response. With the intensification of US-Iran hostilities, investors are priortising wealth preservation over speculative gains,” he added.
Makda further stated that domestic equity markets have resumed downfall dropping by more than 3 per cent so far which has added safe-haven risk premiums in bullion prices.
Commodities markets remained closed in the morning session on Tuesday due to Holi but resumed trading in the evening session.
Globally, Comex silver futures for May delivery gained USD 1.73, or 2.07 per cent, to USD 85.20 per ounce, while gold for April contract went up by USD 54.9, or 1.07 per cent, to USD 5,178.6 per ounce.
“US President Donald Trump signalled that military operations against Iran could persist for a month or longer, heightening fears of a prolonged conflict,” Renisha Chainani, Head – Research at Augmont, said.
She added that Iran’s declaration of closing the Strait of Hormuz and threatening to target transiting vessels has intensified market concerns, given that nearly 20 per cent of global oil supply moves through the key shipping corridor.
“Rising crude oil prices have amplified inflationary and growth concerns worldwide,” Chainani said.
She noted that despite strong safe-haven demand, bullion is facing intermittent profit-booking as the US dollar strengthened to a five-week high.
“The greenback gained support from safe-haven inflows and expectations that rising energy prices potentially delay Federal Reserve interest rate cuts and support US Treasury bond yields in the near-term,” she added.
According to Kotak Securities, investors will now be eyeing key US macroeconomic data, including the US ADP employment change and services PMI data, which could influence the Federal Reserve’s monetary policy outlook and short-term trajectory for bullion prices.
Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said the broader outlook for gold remains positive due to ongoing geopolitical tensions and strong fundamentals. “We expect gold to recover further. Silver, however, may experience choppy trading, as speculative transactions dominate. Overall, we remain bullish on gold, while silver may show a mild positive bias.”
Published on March 4, 2026
