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Informist, Wednesday, Mar. 4, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold and silver rebounded on the Multi Commodity Exchange of India and the COMEX Wednesday, after prices plunged in the previous session, as continuing hostilities in West Asia raised the safe-haven appeal of the precious metals. A slump in the rupee against the dollar also supported prices of the precious metals on the domestic bourse.

 

At 1720 IST, the most-active April GOLD contract on the MCX was up 1.6% at INR 163,614 per 10 grams. The most-active April contract on COMEX was up 1.6% at $5,205.5 per ounce. The most-active May SILVER contract on the MCX was up 3.5% at INR 274,561 per kilogram. The May silver contract on COMEX was up 3.7% at $86.51 per ounce. "Gold rebounded above $5,150 per ounce on Wednesday, recovering from the previous session's decline as investors monitored escalating Middle East tensions," Ajay Kedia, director at Kedia Stocks & Commodities Research Pvt. Ltd., said in a note.

 

Military activity has escalated in West Asia following last week's developments. Israel launched a fresh wave of bombing on Iran and Lebanon late Tuesday. In retaliation for the initial attack, Iran has bombed US embassies and military bases in the region. "The fifth day of direct confrontation between the US, Israel, and Iran has kept risk sentiment fragile, sustaining gold's geopolitical premium even as a stronger US dollar and higher bond yields temper upside momentum," Kotak Securities said in a report.

 

The rupee ended at a record closing low of 92.1500 against the dollar Wednesday, 68 paise lower than its previous close of 91.4700. During the day, the rupee fell to a record low of 92.3025. When the rupee depreciates against the dollar, prices of gold and silver in the domestic market adjust as the precious metals are priced in rupees.

 

However, the gains in precious metals were capped as the prospects of monetary policy easing by the US Federal Reserve have dimmed because the sharp rise in crude oil prices has renewed concerns about inflation. Gold futures closed around 4% lower in the previous session while silver futures closed over 6% lower after the dollar index climbed to a 13-week high of 99.68. "The pullback reflected renewed upward pressure on the dollar and bond yields, as rising energy prices revived inflation concerns and reinforced expectations that the Federal Reserve will keep policy restrictive for longer -- a headwind for non-yielding assets," analysts at ING said in a report.

 

"Gold also came under pressure from a deepening sell-off in equity markets, which forced some investors to liquidate positions in gold to meet margin calls," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

On Tuesday, COMEX gold slumped to a low of $5,006.8 per ounce and silver fell to $78.06 per ounce. Silver's sharper decline reflects its dual role as both a precious metal and an industrial metal, leaving it more exposed to shifts in growth expectations, liquidity and positioning, ING analysts said.

 

"While elevated yields remain a headwind, persistent geopolitical uncertainty and energy driven inflation risks continue to anchor safe-haven demand. Structurally, bullion remains supported as long as macro volatility and policy uncertainty dominate the global situation," Kotak Securities said.

Outlook for the rest of the session:

--MCX gold seen at INR 162,000–INR 165,000 per 10 grams

--COMEX gold seen at $5,150.0–$5,250.0 an ounce

--MCX silver seen at INR 267,000-INR 278,000 per kg

--COMEX silver seen at $84.00-$89.00 an ounce

End

 

US$1 = INR 92.15

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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