MCX silver soars 3% to ₹2.68 lakh/kg; Gold also surges amid rising tensions in West Asia, weak dollar

At around 11:27 AM, the contract was trading 0.47% or ₹756 higher at ₹1,60,429 per 10 grams, tracking an increase in international prices.

In the global markets, COMEX yellow metal futures (April expiry) advanced as much as 1.43% to the session’s peak of $5,151.30 per troy ounce. At the time of writing, it stood at $5,141.90 per ounce, up 1.24%, amid increasing hostilities in the Middle East and a weak dollar.

Similarly, silver futures for expiry in May rallied as much as ₹6,800 or 2.59% to an intraday high of ₹2,68,991 per kilogram on the MCX. The white metal contract stood at ₹2,65,000 per kilogram, reflecting a 1.07% or ₹2,809 increase at the time of writing.

In the international markets, COMEX silver (May delivery) gained as much as 3.3% to the day’s peak of $84.90 per ounce. At the time of writing, it was trading 2.7% higher at $84.40 per ounce.

The rise in precious metal prices comes amid increasing hostilities in West Asia, as the war entered its seventh day. Iran continues to launch strong retaliatory strikes across the region, targeting US military bases and other locations.

The war presents a risk to the oil supply chain as the Iranian regime announced the closure of the Strait of Hormuz. About 20% of the global oil supply passes through the narrow waterway, making it the world’s most critical oil chokepoint. Oil prices have surged sharply since the beginning of the conflict.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.37% lower at 98.94.

On Thursday, the US Labour Department reported that the number of Americans seeking unemployment benefits for the week ending February 28 stayed unchanged at 213,000, matching the previous week’s total, indicating layoffs continue to hover at historically low levels.

Investors are now on the lookout for the US unemployment figures, which is expected to be released later in the day.

According to the CME Group’s Fed Watch, investors bet on a 95.3% probability that the US Federal Reserve will hold policy rates unchanged at its next meeting on March 17 and 18.

Across the pond from the US, the Eurozone’s retail inflation data showed a dip in January, with the seasonally-adjusted retail trade volume easing 0.1% in the Eurozone and rising 0.1% in the European Union.