Gold rate jumps 1% on MCX amid dollar's weakness; focus stays on US-Iran war, US jobs data
Gold rate jumped on the MCX. MCX gold April futures climbed to ₹1,61,108 per 10 grams, rising by almost 1%, while MCX silver May contract jumped to ₹2,68,378 per kg, jumping 2.4% in early deals.
Gold price today: Gold rate jumped by 1% on the MCX on Friday (March 6) morning, supported by a softer US dollar and healthy spot demand amid persisting geopolitical risks and a volatile stock market.
MCX gold April futures climbed to ₹1,61,108 per 10 grams, rising by almost 1%, while MCX silver May contract jumped to ₹2,68,378 per kg, jumping 2.4% in early deals.
The dollar index eased by 0.40% to 98.94 amid profit-taking, making the greenback-backed yellow metal cheaper for overseas buyers.
The US-Iran war is showing no signs of ending soon. US President Donald Trump maintains his aggressive stance on Iran and has signalled he has some plans for Cuba also.
Trump said on Thursday he wants to finish the war in Iran first, but then it "will be just a question of time before you and a lot of unbelievable people are going to be going back to Cuba."
The combined U.S.-Israel attack on Iran entered its seventh day on Friday, significantly raising geopolitical risks. The conflict in West Asia (the Middle East) has disrupted energy supplies, spiked crude oil prices, and raised concerns about inflationary pressures and the consequent elevated interest rates.
Gold, silver prices: US-Iran war boosting gold demand
Meanwhile, U.S. initial jobless claims remained unchanged at 2,13,000 last week, ending February 28, data on Thursday showed. The focus is now on the U.S. February jobs report, due later today, for more clues on the US Fed's interest rate trajectory.
Markets expect the US Fed to keep rates unchanged in its March policy meeting.
"While the ongoing Middle East conflict has boosted demand for safe-haven assets, it also sent oil prices surging, raising inflation concerns and prompting traders to scale back bets on Federal Reserve rate cuts. Markets are now pricing in just one reduction this year, down from two earlier in the week," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted.
Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to stay volatile and suggests avoiding fresh positions.
"We suggest avoiding fresh positions in both precious metals in today's session ahead of the U.S. job data," said Jain.
Jain said gold has support at $5,038 and $4,984, while resistance is at $5,120 and $5,166 per troy ounce, and silver has support at $80 and $76.60, while resistance is at $84.80 and $88 per troy ounce in today’s session.
MCX gold has support at ₹1,58,000 and ₹1,56,600, and resistance is at ₹1,61,100 and ₹1,62,800, while silver has support at ₹2,57,700 and ₹2,52,000 and resistance is at ₹2,66,000 and ₹2,71,000, said Jain.
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Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade. <br><br> He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters. <br><br> His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies. <br><br> With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments. <br><br> He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape. <br><br> Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies. <br><br> Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.
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