Gold nears Rs 1.70 lakh, silver eyes Rs 3 lakh amid safe-haven buying this week

Mumbai, March 7 (IANS) Precious metals – gold and silver – maintained their bullish momentum this week, as escalating geopolitical tensions in the Middle East spurred safe-haven buying and heightened volatility across the broader commodities basket.

Despite intermittent intra-day pullbacks and profit-taking, the trend structure for precious metals remains decisively bullish.

Gold futures (April 2) on MCX extended their upward trajectory, breaking the Rs 1,65,000 resistance and trading at Rs 1,69,880. On Friday, they closed on a flat note at Rs 1,61,675, slightly below the previous close.

Silver futures (May 5) on MCX also continued their upward momentum, breaking above Rs 2,85,000 and trading near the Rs 3,00,000 level amid elevated volatility.

According to Ponmudi R, CEO of Enrich Money, gold and silver approached record highs before experiencing mild corrections, while crude oil surged sharply due to supply disruption concerns.

Traders have shown increased participation near key breakout levels, though elevated volatility underscores the need for disciplined risk management, he added.

Momentum indicators suggest sustained trend strength, with gold likely to continue toward Rs 1,70,000 if support holds, while a drop below Rs 1,57,000 could extend corrective pressure toward Rs 1,50,000.

The Rs 2,55,000–Rs 2,65,000 range now serves as a strong demand zone for silver, Ponmudi noted. “Price action remains constructive, with the potential to extend toward Rs 3,00,000–Rs 3,05,000, while a drop below Rs 2,60,000 could trigger short-term consolidation.”

He added that selective upside participation remains favorable, but traders should exercise caution around recently tested support zones as macroeconomic and geopolitical risks continue to dominate market sentiment.

Meanwhile, COMEX gold futures traded firm this week, settling in the $5,158–$5,181 range, up from the prior close of $5,078–$5,099.

COMEX silver futures also saw strong upside, closing around $84.31, after hitting session highs of $85.34 and lows of $81.79.

--IANS

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