Safe Heaven hedge – Gold is currently consolidating in the $5,100–$5,200 range, reflecting a pause after the strong rally seen earlier this year, while silver is heading for a weekly decline of more than 10% as investors shift toward the US dollar. Normally, escalating geopolitical tensions support precious metals, but this time a stronger dollar and rising US Treasury yields are offsetting the safe-haven premium.

Geopolitical Tensions – The ongoing US–Israel conflict with Iran, now in its seventh day, has heightened regional uncertainty after Iran launched missiles and drones across the Gulf, striking an oil refinery in Bahrain, while Israel continued airstrikes on Tehran.

Dollar Strength – However, robust US economic data—such as lower jobless claims and stronger services growth—has pushed expectations for the next Federal Reserve rate cut to September or October, supporting the dollar and creating short-term headwinds for gold and silver.

Technical Triggers   

Gold continues to maintain a bullish bias, with prices expected to move towards $5250 (~ ₹165,000) and $5300 (~ ₹167,000) in the near term. Strong support is seen around the $5000 (~ ₹158,000) level, which is likely to act as a key buying zone on any corrective dips.

Silver also remains firmly supported and is continuing its upward momentum, with the next upside target seen around $90 (~ ₹282,000). On the downside, strong support is placed near $80 (~ ₹255,000), suggesting that any short-term corrections could attract fresh buying interest.

Dr.Renisha Chainani, Head- Research, Augmont