Go͏ld Rate Rises on ͏MCX ͏Amid US-Iran War An͏d Dollar Volati͏l͏ity

Mumbai,͏ ͏March 17: ͏Gold and s͏i͏lver prices ͏on͏ the Multi-Commodity Exchange (MCX)͏ surged in early deals on Tuesday, driven by es͏calating geopolitical tensions in the Middle East ͏and heightened v͏olatility in t͏he U͏S͏ do͏l͏lar. ͏MCX gold April cont͏r͏acts rose b͏y over 0͏.5% to͏ ₹1,56,740 ͏pe͏r 10 gra͏ms, while MCX si͏lver May futures climbed more tha͏n 1% to ₹͏2,59,56͏9 per kilogram, r͏eflecting growing͏ demand for sa͏fe-hav͏en assets amid market͏ uncertainty.

Gold P͏ric͏es Gain͏ 0.5% T͏o ₹1,56,74͏0 Amid Globa͏l U͏nr͏e͏st

Gold f͏utures fo͏r April del͏ivery o͏n MCX opene͏d higher after falling ͏in the previous session, where contracts ended at ₹1,55,736 per 10 gr͏am͏s, down about͏ 2%. Silver futures for Ma͏y si͏milarly͏ rebou͏nded͏ ͏fr͏om a 1͏% decline to ₹͏2͏,56,532 per k͏ilogr͏am. The surge coi͏n͏cides wi͏th the t͏h͏ird week͏ of t͏he ongoing US-Iran war, which ha͏s caused ͏widesprea͏d ͏di͏sruption across the Middle͏ East, p͏art͏icularly targe͏ting ͏en͏ergy͏ infrastructure. Iranian dr͏ones ͏at͏tacked Dubai, Ab͏u Dhabi, and Fujairah, for͏cing the temporary͏ ͏closure ͏of ͏Dubai I͏n͏t͏ernational Airport due͏ to ͏a fuel ta͏nk strike near the airfi͏eld.

Rising Crude Oil Prices Above $100 Push Commodity Costs Higher

Crude oil prices have remained above $100 per barrel, adding pressure on global inflation and economic growth concerns. The conflict has disrupted supply chains and shipping routes, particularly in the Strait of Hormuz, a key energy corridor. US President Donald Trump has urged international assistance to secure the waterway, although several nations have declined to participate. These developments have amplified commodity price volatility and prompted investors to monitor safe-haven assets such as gold and silver closely.

US Dollar Volatility Influences Gold Price Fluctuations

The US dollar is trading with heightened volatility ahead of the US Federal Reserve’s policy meeting scheduled for March 18. The Fed is widely expected to keep interest rates unchanged due to evolving geopolitical conditions. Historically, gold attracts investors during uncertainty; however, a stronger US dollar increases gold prices for buyers using other currencies, reducing global demand. This dynamic has contributed to gold’s relatively muted gains despite geopolitical risks, while silver has slightly outperformed with intraday rises of nearly 2%, touching ₹2,61,457 per kilogram.

Profit Booking and Technical Corrections Weigh On Gold Gains

After reaching record highs above $5,300 per ounce earlier this year, gold experienced profit-booking pressures. Market analysts note that despite heightened risk in West Asia, gold has not rallied significantly as central banks, particularly in the US, are unlikely to cut interest rates amid rising inflation concerns. Interest rate stability makes yield-bearing assets comparatively more attractive than gold, which offers no fixed income, thus moderating the price movement in the domestic and international markets.

Spot Gold and Silver Marginally Higher Amid Oil Shipment Concerns

Spot gold traded around $5,023 per ounce, up 0.4%, while spot silver recorded gains to approximately $81.5 per ounce during Asian trading hours. The increase follows easing concerns over prolonged oil shipment disruptions, although crude oil remains above $100 per barrel. Investors continue evaluating the broader economic implications of the Middle East conflict and central bank policies in the US, Europe, and Japan, keeping precious metal prices volatile and closely watched.

MCX Gold Futures Touch Near ₹1.57 Lakh Amid Investor Caution

MCX gold futures with April expiry traded around ₹1,56,800 per 10 grams, approaching ₹1.57 lakh in early deals. Silver futures with May expiry also surged, reflecting a more than 1% increase from previous session lows. Analysts attribute the cautious yet upward trend to a combination of geopolitical risk, inflation expectations, and central bank policy anticipation. Despite these factors, the market exhibits restraint, with trading volumes indicating a wait-and-watch approach rather than aggressive positioning.

Indian Bullion Market Shows Mixed Gold Rates Across Cities

In Delhi, 24-carat gold stood at ₹1,57,570 per 10 grams, while 22-carat and 18-carat gold were priced at ₹1,44,450 and ₹1,18,220 per 10 grams, respectively. Mumbai’s rates mirrored this trend with 24-carat gold at ₹1,57,420 per 10 grams, while Chennai reported slightly higher prices at ₹1,60,480 per 10 grams. The variation reflects local market demand, transportation costs, and taxation, alongside the influence of global commodity fluctuations.

Fed Rate Stability and Inflation Concerns Keep Markets Volatile

The US Federal Reserve’s anticipated decision to maintain interest rates unchanged for the second consecutive meeting has intensified market attention on global inflation and central bank actions. Rising energy and commodity prices, particularly crude oil, threaten to sustain inflationary pressure, prompting global central banks to exercise caution regarding monetary easing. Consequently, precious metals are experiencing price swings as markets weigh geopolitical risks against macroeconomic stability and policy signals.

Gold Price Remain Sensitive to Geopolitical and Policy Developments

Traders and analysts note that the current environment differs from typical crisis scenarios. While geopolitical tensions usually drive gold sharply higher, the dominance of monetary policy considerations, strong US dollar flows, and prior profit-taking have tempered gains. Institutional investors are adjusting positions in response to evolving expectations regarding interest rates and inflation, creating a landscape of moderated price volatility across gold and silver markets.

Gold price js experiencing volatility due to a combination of Middle East geopolitical tensions, crude oil price pressures, and the US dollar’s strength ahead of Federal Reserve policy announcements. The market remains attentive to developments in inflation, central bank policy stances, and regional conflict updates, which are key determinants of short-term price movements for precious metals