Gold Prices Steady Amid Middle East Tensions

Gold prices continued to show strength this week as global investors moved toward safe-haven assets amid rising geopolitical tensions in the Middle East.

Market analysts say uncertainty related to the ongoing conflict involving the United States, Israel and Iran has supported demand for precious metals, including gold and silver.

Safe-haven demand supports bullion

At the start of the week, gold prices opened higher as investors sought relatively safer investment options during periods of geopolitical uncertainty.

According to Maneesh Sharma, AVP – Commodities & Currencies at Anand Rathi Shares and Stock Brokers, gold has remained broadly positive despite some profit-booking pressure during the week.

He noted that stronger performance in safe-haven currencies such as the US dollar has occasionally led investors to lock in profits in the gold market.

Gold records strong monthly performance

Gold also registered its seventh consecutive monthly gain in February, marking the longest rally since 1973.

Analysts attribute the continued rise to a combination of geopolitical tensions, global economic uncertainty and changing international relations.

Another key factor supporting gold prices has been steady buying by central banks across several countries.

Central banks continue gold purchases

Recent data indicates that some central banks have increased their gold reserves.

For example, Bank Negara Malaysia reportedly purchased around 3 tonnes of gold, marking its first net purchase since 2018. Meanwhile, the Bank of Korea is also expected to resume gold investments after a long gap.

Other emerging market central banks, including the Central Bank of Uzbekistan, have also continued adding gold to their reserves.

Experts say geopolitical risks and the desire to diversify reserves are encouraging central banks to maintain their gold-buying trend.

Outlook for gold and silver this week

Analysts expect the overall outlook for gold to remain positive in the near term, although short-term volatility may continue.

Spot gold, currently trading around $5,165 per ounce, is expected to maintain a positive bias with support levels near $5,070–$5,050 per ounce, according to market analysis.

Silver, which tends to be more volatile due to lower market liquidity, may trade within a wider range. Analysts expect silver prices to fluctuate between $76 and $89 per ounce, with potential upside targets around $92–$93 per ounce.

Key price levels in Indian markets

In India, the MCX April gold futures contract is trading near ₹1,63,275 per 10 grams.

Analysts suggest that resistance levels may appear around ₹1,65,000 to ₹1,65,700 per 10 grams. A sustained move above this range could potentially push prices toward ₹1,72,000 per 10 grams in the coming weeks.

Global factors to watch

Experts say the future movement of gold and silver prices will largely depend on how geopolitical developments unfold.

If tensions continue or escalate, investors may continue moving toward safe-haven assets such as precious metals, the US dollar, Japanese yen and Swiss franc.

However, any diplomatic progress or signs of de-escalation could lead to temporary profit-taking in the gold market.

For now, analysts say investors are closely monitoring developments in the Middle East, as well as movements in global currency and equity markets.