Silver, gold prices climb amid US-Iran tensions

New Delhi: Silver and gold prices continue to climb as the escalating tensions between the United States and Iran boosted safe-haven demand. Silver prices surged by ₹4,357 to ₹2.45 lakh per kg in futures trade on Friday, while gold prices advanced  ₹1,315 to ₹1.56 lakh per 10 grams.

On the Multi Commodity Exchange, silver contracts for March delivery rose ₹4,357, or 1.8%, to ₹2,45,750 per kilogram, with a business turnover of 5,975 lots and gold contracts for April delivery rose ₹1,315, or 0.85%, to ₹1,56,134 per 10 grams, with a turnover of 7,355 lots, reported PTI.

In overseas markets, COMEX gold futures for April delivery climbed USD 49.55, or 1%, to USD 5,046.95 per ounce.

Gold crossed the USD 5,000 mark as safe-haven buying intensified amid escalating US-Iran tensions, Hareesh V, Head of Commodity Research at Geojit Investments Ltd, said.

In international markets, COMEX silver futures extended gains for a third consecutive session, climbing USD 1.23, or 1.6%, to USD 78.87 per ounce.

Analysts said prices hovered near the USD 80 per ounce mark as traders assessed geopolitical developments alongside expectations around US monetary policy.

Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said, "Tensions between the US and Iran escalated after President Donald Trump set a 10-15 day deadline for nuclear deal talks, while Washington deployed its largest military force in the Middle East since the 2003 Iraq invasion.

Meanwhile, Federal Reserve Governor Stephen Miran signalled that stronger-than-expected economic data could delay rate cuts, even as January Federal Open Market Committee meeting minutes showed policymakers divided on the interest rate path.

Physical demand in Asia remains seasonally muted amid the Lunar New Year," Trivedi said.

Investors are now watching the US Personal Consumption Expenditures (PCE) price index data due later in the day for further indications on the Federal Reserve’s next policy move and the near-term outlook for precious metals, he added.