Silver prices rise by Rs 3,000, gold Rs 400 higher as US-Iran standoff increases port area’s appeal

Domestic gold prices traded positively in opening trade on Friday amid positive global cues as geopolitical tensions kept the yellow metal’s appeal intact. Gold futures on the MCX in April rose nearly Rs 400 per 10 gram or 0.24% to Rs 1,55,198. Meanwhile, March silver futures traded at Rs 2,44,390 per kg, up 1.24% or Rs 3,000 from the previous closing price of Rs 2,41,400.Gold prices on the COMEX hovered around $5,017.60, rising $20.20, or 0.40%, while silver was worth $78,310 an ounce, up $0.676.

Gold prices have corrected by 25% or Rs 38,000 from their peak after a stellar rally in 2025 that spilled over into January as well. Similarly, silver is also under consolidation, falling sharply from its lifetime high of Rs 4,20,048.

Jateen Trivedi, Vice President and Research Analyst, Commodity and Currency at LKP Securities, sees positive trends for gold continuing in the wake of a stalemate in US-Iran talks, rekindling military tensions and fueling new safe-haven buying. Although gains have been limited as delayed expectations for rate cuts and profit bookings have limited upside momentum, he said.

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“On the technical front, resistance is seen in the zone of $5,000 to $5,025 on COMEX and Rs 1,57,500 to Rs 1,58,500 on MCX, while support is around $4,925 and Rs 1,52,000. Volatility is likely to persist amid geopolitical headlines and Fed signals on interest rate outlook,” Trivedi said.

Domestically, bullion got a shot in the arm after MCX and the National Stock Exchange of India (NSE) announced the withdrawal of additional margins on gold and silver futures contracts, effective Thursday, February 19. MCX said it will eliminate the 3% additional margin on all gold futures contracts and the 7% additional margin on all silver futures contracts that were introduced earlier this month. The exchange has advised its clearing members to take note of the revision.

Removing the additional margin of 3% on gold and 7% on silver reduces capital requirements for traders, improving capital efficiency, especially for leveraged participants. Typically, lower margins encourage higher speculative participation, new long and short positions, and greater intraday activity, which can improve liquidity in gold and silver futures.

The additional margins were initially imposed as a risk management measure following sharp volatility in precious metal prices. However, following a recent correction in gold and silver, both exchanges have decided to roll back restrictions, a move expected to ease trading costs for market participants.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)