Earlier in the day, silver prices on MCX were up by 3.3 per cent, while gold was up by more than 1 per cent, but later fell due to light profit booking.
Spot silver rose 1.2% to $84.43 an ounce, while spot gold rose 0.8% to $5,176.69 an ounce.
Inflation concerns increased as fighting between the US, Israel and Iran continued for the sixth day and disruptions in global energy supply routes continued. Additionally, weakness in the US dollar created headwinds for bullion.
The dollar index rose 0.22 percent to 98.99, making dollar bullion cheaper for buyers in foreign currencies. The dollar suffered its biggest decline in three years as rising oil prices and gains in global equities reduced demand for the safe-haven currency.
Analysts estimated silver prices could consolidate between $85 and $95, after which they could move towards $100, while gold could reach $5,500–$5,600 levels if the closure of the Strait of Hormuz continues, disrupting the global energy supply route.
In early morning trade, the April contract of benchmark crude on the Intercontinental Exchange was trading at $83.26 a barrel, about 2.43 per cent higher than its previous close.
The April contract for West Texas Intermediate on NYMEX rose 2.63 percent to $76.63 a barrel. A US submarine sank an Iranian warship off Sri Lanka, killing at least 80 people. This incident significantly escalated the ongoing feud and increased the risk of the feud spreading into the area.
“Gold has support at Rs 1,58,000 and Rs 1,62,000, while resistance at Rs 1,75,000 and Rs 1,80,000. MCX Silver has support at Rs 2,50,000 and Rs 2,70,000, and Rs 3,00,000 and Rs 3,20,000,” an analyst said. There is resistance.”
Analysts expect higher energy prices to boost inflation and delay a potential interest rate cut by the US Federal Reserve, which will support US Treasury yields in the short term, limiting gains in precious metals.
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