Mumbai: After suffering sharp losses of over 5% in the previous session, the gold price today jumped more than 2% in morning deals on Friday, March 20, driven by value buying amid persisting geopolitical risks.
MCX gold April futures had closed at ₹1,44,954 per 10 grams in the previous session, plunging over 5%, while MCX silver May futures ended at ₹2,31,460 per kilogram, suffering a nearly 7% loss. On Friday morning, gold price today surged by ₹3,350, or 2.30%, to ₹1,48,302 per 10 grams, while MCX silver May contracts jumped ₹8,540, or 3.7%, to ₹2,40,000 per kilogram.
Analysts said the medium to long-term outlook for gold remains positive due to central bank buying and ongoing geopolitical uncertainties. However, short-term challenges persist, including the rising US dollar and weaker expectations of US Federal Reserve rate cuts in 2026. Domestic spot gold prices have declined nearly ₹10,600, or almost 7%, till Thursday this week.
Gold Price Today: Strong Dollar and Rising Oil Prices Weigh on Safe-Haven Demand
US gold futures have also recorded losses exceeding 7% this week, marking the third consecutive week of decline amid a strengthening US dollar. Rising crude oil prices, traded in dollars, have further pushed the dollar higher, limiting gold’s safe-haven appeal.
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The dollar index, which remained above 100 till Thursday, dropped to 98.97 but regained momentum on Friday, rising 0.20% to 99.42. Brent crude futures fell over 3% but remained above the $100-per-barrel mark.
Geopolitical tensions continue to influence markets, with the US-Iran conflict escalating after Tehran targeted energy facilities in the Middle East. Israeli Prime Minister Benjamin Netanyahu indicated the war might end sooner than expected, while US President Donald Trump reportedly advised Israel against further attacks on Iranian natural gas infrastructure.
The US Federal Reserve maintained interest rates on March 18 and projected one rate cut in 2026, though traders see limited near-term easing.
Key Levels for Gold and Silver
Experts suggest traders watch key support and resistance levels. Manoj Kumar Jain of Prithvifinmart Commodity Research said, “MCX gold has support at ₹1,41,400 and ₹1,39,500, with resistance at ₹1,47,200 and ₹1,49,100. Silver has support at ₹2,24,400 and ₹2,17,000, while resistance is at ₹2,38,000 and ₹2,44,000.”
Jateen Trivedi, VP Research Analyst at LKP Securities, added that while geopolitical tensions usually support safe-haven demand, the current inflation-driven policy environment is limiting near-term gains. He noted that “the gold price today remains technically weak, with resistance shifting towards ₹1,50,000 and key support in the ₹1,44,000–₹1,42,000 zone. Short-term trends are weak to volatile, reacting sharply to interest rate and geopolitical developments.”
Investors are advised to consider short-term volatility and use rallies to exit positions, while continuing long-term investment strategies such as SIPs, according to analysts.