Gold, Silver Slide as West Asia Conflict Drives Oil and Dollar Higher — Is Bullion Losing Momentum?

Gold and Silver Prices Turn Volatile on March 5: Profit Booking, Stronger Dollar and West Asia Tensions Shape Bullion Market Moves

Gold and silver prices witnessed sharp volatility on March 5, 2026, as investors balanced safe-haven demand with profit booking after the recent rally triggered by geopolitical tensions in West Asia. While precious metals initially gained strength amid rising global uncertainty, the momentum faded during the day as the US dollar strengthened and crude oil prices surged.

On the Multi Commodity Exchange (MCX), gold traded just above ₹1.61 lakh per 10 grams, while silver slipped significantly from recent highs to trade below ₹2.70 lakh per kilogram. The movement highlights the fragile balance between defensive demand for bullion and short-term trading activity in global commodity markets.

Market experts note that precious metals remain highly sensitive to macroeconomic developments, particularly geopolitical conflicts, inflation expectations, currency movements and central bank policy signals.

“The broader trend for bullion remains positive due to geopolitical uncertainty and inflation concerns. However, after a strong rally, short-term corrections driven by profit booking are natural,” said a commodities strategist monitoring global metals markets.

Gold and Silver Retreat From Recent Highs as Traders Book Profits

After a strong rally earlier in the week, both gold and silver experienced a temporary pullback as traders locked in gains.

During early trading on March 5:

• MCX gold slipped about 0.06% to around ₹1,61,426 per 10 grams

• MCX silver declined more sharply, dropping over 1% below ₹2.60 lakh per kilogram

Gold had opened the session near ₹1,62,600, while silver started around ₹2,70,596, but both metals lost momentum as the trading session progressed.

In the international market, price fluctuations were also visible. Spot gold traded near $5,163 per ounce, while Comex silver hovered around $82–$84 per ounce.

The pullback mainly reflects short-term profit booking following the strong rally that pushed bullion prices to multi-week highs earlier this month.

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Geopolitical Tensions in West Asia Continue to Support Safe-Haven Demand

Despite the correction, the broader outlook for precious metals remains supported by rising geopolitical risks.

Escalating tensions involving the United States, Israel and Iran have created fresh uncertainty in global financial markets. Reports of missile strikes, retaliatory attacks and disruptions to regional energy infrastructure have raised concerns about potential instability in global oil supply.

Historically, geopolitical conflicts tend to drive investors toward safe-haven assets such as gold and silver.

According to the Augmont Bullion Daily Report, renewed safe-haven demand has helped bullion prices recover significantly in recent sessions.

• Gold has climbed nearly 5% to move above the $5,200 level

• Silver has surged close to 10% to trade above $85 per ounce

These movements reflect how geopolitical uncertainty continues to play a central role in shaping bullion market trends.

Stronger US Dollar and Rising Oil Prices Add Pressure to Precious Metals

While geopolitical tensions typically support bullion prices, a stronger US dollar has recently limited the upside for gold and silver.

When the dollar strengthens, commodities priced in the currency become more expensive for global investors, which can temporarily reduce demand for precious metals.

At the same time, rising crude oil prices have intensified concerns about inflation across global markets. The surge in energy prices has prompted traders to reassess expectations around global interest rate policies.

Market participants now expect the US Federal Reserve’s first interest rate cut to be delayed until September, with further easing likely only in 2026.

Higher interest rates generally reduce the attractiveness of non-yielding assets such as gold, contributing to short-term volatility in bullion prices.

MCX Bullion Prices Show Intraday Recovery Amid Global Cues

Although prices corrected from early highs, bullion markets witnessed intermittent buying during the trading session.

By afternoon trade on March 5:

• MCX gold traded near ₹1,61,646 per 10 grams, gaining ₹121 from the previous close

• MCX silver moved up to around ₹2,66,400 per kilogram, rising ₹840 during the session

International markets also showed supportive cues:

• Comex gold traded around $5,173 per ounce

• Comex silver climbed close to $84 per ounce

The mixed price action suggests that investors remain cautious but continue to maintain exposure to precious metals as a hedge against global uncertainties.

Bullion Prices Still Below Recent Peaks After Sharp Correction

Despite the current stability, gold and silver remain below the peaks recorded earlier in March.

On March 2, bullion prices had surged sharply:

• Gold reached nearly ₹1,69,880 per 10 grams

• Silver touched around ₹2,97,799 per kilogram

Since then, both metals have corrected significantly:

• Silver has declined about 9% from its peak

• Gold has slipped roughly 4.7% from recent highs

Analysts attribute the decline primarily to profit booking after the rapid rally triggered by geopolitical developments.

However, the broader bullish trend for precious metals remains intact as long as global uncertainty persists.

Technical Outlook Suggests Further Upside for Gold and Silver

According to the Augmont Bullion report, the technical outlook for precious metals continues to indicate a bullish bias despite near-term volatility.

The report highlights that gold may move toward the $5,250–$5,300 range, which translates to approximately ₹1.65–₹1.67 lakh in the domestic market.

Silver also remains well supported and could potentially move toward $90 per ounce, equivalent to around ₹2.82 lakh per kilogram.

Key support levels include:

• Gold support near $5,000 (₹1.58 lakh)

• Silver support near $80 (₹2.55 lakh)

Any short-term correction toward these levels could attract fresh buying interest from investors.

Gold Prices Across Major Indian Cities on March 5

Retail gold prices across India’s major cities remained largely stable, with only marginal differences due to local taxes and jeweller margins.

Gold Price per Gram (March 5, 2026)

These prices indicate that retail demand for gold remains stable despite fluctuations in futures markets.

Here’s What Happened Today and Why Traders Reacted

The bullion market on March 5 reacted to multiple global factors that influenced investor sentiment.

Key drivers behind the price movements included:

• Profit booking after the recent rally in precious metals

• Strength in the US dollar

• Rising crude oil prices amid geopolitical tensions

• Escalating US-Israel-Iran conflict

• Shifting expectations regarding US Federal Reserve rate cuts

These developments created significant intraday volatility in both domestic and global bullion markets.

What Today’s Bullion Volatility Means for Investors

The recent movements in gold and silver prices carry important implications for investors and traders.

For short-term traders, volatility creates opportunities in commodity futures markets. However, sudden price swings also increase risk.

For long-term investors, precious metals continue to serve as an important hedge against geopolitical risks, inflation and currency volatility.

Key investor insights include:

• Precious metals remain strong safe-haven assets

• Short-term corrections after rallies are normal in commodity markets

• Inflation concerns and geopolitical risks continue to support bullion

• Diversification through gold and silver can reduce portfolio risk

With global tensions, inflation concerns and currency movements still shaping financial markets, the bullion market is likely to remain volatile but broadly supported in the near term. Investors will continue to track geopolitical developments, crude oil prices, US dollar movements and central bank signals to assess the next direction for gold and silver prices.