Gold, Silver Jump More Than 1% as Middle East Conflict Drives Safe-Haven Demand
NEW DELHI — Gold and silver prices surged more than 1 percent on Wednesday as escalating conflict in the Middle East boosted demand for safe-haven assets.
Gold futures for April delivery on the Multi Commodity Exchange rose 1.04 percent to ₹162,790 per 10 grams in intraday trading around 11:30 a.m. Silver futures for May delivery climbed 1.84 percent to ₹270,200 per kilogram.
The gains came as rising tensions involving the United States, Israel and Iran fueled concerns about potential energy supply disruptions and broader geopolitical instability, pushing investors toward traditional safe-haven assets.
Investors were also weighing the possibility that persistent inflation pressures in the United States could lead the Federal Reserve to keep interest rates unchanged for a longer period.
Despite the rally in precious metals, exchange-traded funds tied to gold and silver recorded steep declines during the session. Major silver ETFs fell between 7.12 percent and 7.43 percent, while gold ETFs dropped between 3 percent and 3.87 percent.
In global markets, spot gold rose about 1 percent to $5,138.46 per ounce, while U.S. gold futures for April delivery gained 0.5 percent to $5,147.10.
Gold has climbed roughly 19 percent so far this year after surging 64 percent in 2025, driven largely by geopolitical tensions and strong buying from central banks.
The U.S. dollar index edged up 0.15 percent to 99.20, making dollar-denominated bullion more expensive for buyers using other currencies and limiting further gains in gold prices.
The move in precious metals came as the Middle East conflict intensified. U.S. President Donald Trump said American forces had carried out strikes against multiple Iranian naval and air targets, while Iran responded by targeting key oil infrastructure across the Gulf region.
The developments prompted investors to reduce exposure to equities amid fears that the conflict could disrupt global energy markets and major shipping routes.
Oil prices also rose sharply. West Texas Intermediate crude climbed above $75 per barrel, extending a two-day gain of about 11 percent. Brent crude traded near $81 per barrel as supply risks mounted due to tensions and shipping disruptions through the Strait of Hormuz.
Investors are also watching upcoming U.S. economic data — including manufacturing and services purchasing managers’ indexes, ADP employment figures and unemployment data — for clues about the Federal Reserve’s future policy direction.
Market analysts said gold and silver remain supported by strong demand but face key technical levels.
“Gold has support at ₹158,000 and ₹162,000 while resistance at ₹175,000 and ₹180,000,” one analyst said. “MCX silver has support at ₹250,000 and ₹270,000, and resistance is at ₹300,000 and ₹320,000.” (Source: IANS)
