Silver rate today: White metal rises over 3% amid rising US-Iran tensions, weak dollar - What's next?

Gold, silver rate today: Silver prices moved higher on Thursday, March 5, as intensifying conflict in the Middle East pushed investors toward traditional safe-haven assets, while a softer US dollar added further support to bullion. Gold price also advanced. The regional war entered its sixth day with no clear path to de-escalation, keeping markets on edge. The continuous attacks have resulted in the shutdown of the Strait of Hormuz, disrupting global energy supply routes.

On MCX, Silver price jumped 3.3% or ₹8,691 to ₹2,74,251 per kg while MCX Gold price advanced 1% or ₹1,617 to ₹1,63,142 per 10 grams.

Spot silver climbed 1.2% to $84.43 per ounce, while spot gold rose 0.8% to $5,176.69 per ounce by 0101 GMT. U.S. gold futures for April delivery advanced 1% to $5,186.30, reflecting steady demand for bullion amid rising uncertainty.

Gold hovered near $5,160 an ounce in early trading after gaining about 1% in the previous session. The metal drew fresh buying interest as investors sought protection from geopolitical risk after continued military escalation between the United States, Israel and Iran rattled global financial markets.

Gold, Silver: Reasons for today's rise

Precious metals often benefit during periods of geopolitical instability as investors shift away from riskier assets toward stores of value. The current conflict has heightened concerns over global economic stability and energy supply disruptions, further strengthening the appeal of gold and silver.

At the same time, weakness in the U.S. dollar provided additional support to bullion prices. The dollar posted its steepest fall in three weeks on Wednesday as rising oil prices and gains in global equities reduced demand for the safe-haven currency. Because gold and silver are priced in dollars, a weaker dollar typically makes them cheaper for buyers holding other currencies, boosting demand.

Meanwhile, tensions in the Middle East intensified sharply on Wednesday after a U.S. submarine sank an Iranian warship near Sri Lanka, reportedly killing at least 80 people. The incident marked a significant escalation in the ongoing conflict and heightened fears that the war could expand further across the region.

In a separate development, NATO air defence systems intercepted and destroyed an Iranian ballistic missile that had been fired toward Turkey. The incident underscored the widening geographic scope of the confrontation, raising concerns about broader regional involvement.

Tehran, meanwhile, rejected reports suggesting that its Ministry of Intelligence had contacted Washington to seek negotiations aimed at ending the conflict. Iranian authorities described the claims as “pure falsehood,” signalling that diplomatic efforts to halt the fighting remain uncertain.

Political developments inside Iran also suggested that the country was preparing for a prolonged confrontation. The son of Iran’s slain supreme leader has reportedly emerged as a leading contender to succeed him, reinforcing the perception that Tehran is unlikely to back down under external pressure. The ongoing U.S.–Israel military campaign, which began five days ago, has already resulted in hundreds of casualties and triggered sharp moves across global financial markets.

The growing conflict has also raised concerns about potential disruptions to energy supplies, a key driver of inflation expectations worldwide. Markets remain particularly sensitive to developments in the Middle East because the region plays a crucial role in global oil production and shipping routes.

Beyond geopolitical developments, investors are also closely watching upcoming U.S. economic data that could influence the direction of interest rates and currency markets. Weekly U.S. jobless claims data scheduled for release later on Thursday may provide fresh clues about the health of the labour market.

Attention will also shift to the U.S. employment report for February due on Friday, which is widely seen as a key indicator for the Federal Reserve’s monetary policy outlook. Stronger-than-expected labour data could strengthen the dollar and weigh on bullion prices, while weaker numbers may reinforce expectations of policy easing and support precious metals further.

What should Investors do?

According to Renisha Chainani, Head of Research at Augmont, the combination of escalating geopolitical tensions and potential energy supply disruptions has significantly amplified market uncertainty.

“US President Donald Trump signaled that military operations against Iran could persist for a month or longer, heightening fears of a prolonged conflict. In response, Iran declared the Strait of Humroz closed and warned it would target vessels attempting transit.”

Chainani indicated that the closure threat has major implications for global energy markets since a significant portion of crude oil shipments pass through the narrow corridor. The surge in oil prices is therefore raising concerns about a fresh wave of inflation globally, which could complicate monetary policy decisions for central banks.

Despite strong safe-haven demand during the conflict, gold and silver have seen phases of profit booking in recent sessions. Chainani noted that this pullback has been largely influenced by the strengthening US dollar, which recently climbed to a five-week high. The greenback has attracted safe-haven inflows amid rising geopolitical uncertainty.

She explained that expectations of higher energy prices feeding into inflation could delay potential interest rate cuts by the US Federal Reserve, thereby supporting US Treasury yields in the near term. This dynamic tends to limit upside in precious metals because a stronger dollar makes dollar-denominated commodities more expensive for international buyers

“After achieving the target of $93 ( ₹2,85,000), Silver prices are expected to consolidate and build a base around $85 and $95 before resuming for the new bullish momentum towards the next resistance level of $100 ( ₹300,000),” predicted the expert.

For gold, she said, “After achieving the target of $5400 ( ₹1,67,000), Gold prices are consolidating and building a base for the new bullish momentum towards $5500 ( ₹1,72,000) and $5600 ( ₹1,76,000).”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.