Gold is back in the spotlight. As tensions in the Gulf intensify, investors are once again rushing towards the yellow metal for safety. On Tuesday, at the time of writing, gold prices surged by nearly Rs 5,000 on the Multi Commodity Exchange (MCX), reflecting strong safe-haven demand amid fears that the conflict could widen.
The big question now is simple, i.e., will prices continue to rise if the crisis deepens?
SAFE-HAVEN DEMAND RETURNS
Investors across the world are feeling uneasy. Concerns over oil supply disruptions and wider geopolitical fallout have pushed many to reduce exposure to equities and other riskier investments.
As a result, safe-haven assets such as gold have seen strong buying. Silver too has attracted attention, though its movement has been more mixed.
At around 12.20 pm on March 3, MCX gold was trading at Rs 1,66,199, up by Rs 4,095 or 2.53%. Silver was at Rs 2,80,090, down by Rs 2,554 or 0.90%.The recent surge marks the fifth straight session of gains for gold, taking prices to multi-week highs.
FROM CONSOLIDATION TO FRESH BREAKOUT
For most of February, gold and silver had been moving in a narrow range. After correcting from record highs near Rs 1,80,000–Rs 1,81,000, the market had entered a consolidation phase.
The fresh geopolitical trigger appears to have changed that mood completely.
Ponmudi R, CEO of Enrich Money, said, “MCX Gold futures are trading in the Rs 1,65,000–Rs 1,70,000 range after consolidating post the sharp correction from all-time highs near Rs 1,80,000–Rs 1,81,000.”
He added that prices are currently in short-term consolidation but carry a positive bias, holding firm above critical support levels.
WHAT TECHNICAL CHARTS SUGGEST
According to Ponmudi, strong buying interest continues in the Rs 1,58,000–Rs 1,62,000 demand zone following the recent surge driven by Middle East tensions.
“A sustained hold above this base, followed by a breakout above Rs 1,65,000, may revive momentum toward Rs 1,70,000–Rs 1,75,000, preserving a bullish medium-term perspective,” he said.
In simple terms, as long as gold remains above its key support zones, the broader trend could remain positive.
WHAT ABOUT SILVER?
Silver has also seen heightened activity.
Ponmudi said, “MCX Silver futures are trading around Rs 2,75,000–Rs 3,00,000 following a gap up. The long-term bullish framework remains firmly intact, supported by favourable global cues amid heightened geopolitical tensions.”
He pointed out that key support lies between Rs 2,50,000 and Rs 2,70,000. “A sustained hold above this region could trigger recovery toward Rs 3,20,000–Rs 3,30,000. Dips toward strong support zones may offer accumulation opportunities for positional traders, though a decisive breakdown below these levels could accelerate downside pressure,” he added.
WILL GOLD CONTINUE TO RISE?
The next move in gold will largely depend on how the Gulf crisis unfolds. If tensions escalate further, especially around critical oil routes, safe-haven demand may stay strong.
However, if diplomatic efforts lead to de-escalation, some of the recent gains could cool off.
For now, one thing is clear: uncertainty has returned to global markets, and gold is once again playing its traditional role as a shelter in turbulent times.
