Iran To Set Silver Prices On Fire? Investors Brace For Manic Monday

Silver investors are staring at what could be their most explosive open in months after a joint US–Israel strike on Iran jolted global markets and triggered retaliatory action from Tehran. Gold has already fired the first shot. Now, with Indian exchanges shut over the weekend, the real question is whether silver will deliver the sharper punch when trading resumes on Monday.

Early clues are flashing. Tether Gold, the crypto token backed by physical bullion and trading round the clock, jumped nearly 4% even as traditional markets remained closed. That move offers a live snapshot of capital fleeing to safety after Israel struck Iran's capital, calling it an existential threat, with the US backing the action. Iran has retaliated, raising fears of a broader regional confrontation and injecting fresh uncertainty into already fragile risk sentiment.

In geopolitical crises, gold typically reacts first. But silver often posts the bigger percentage swings once momentum builds, particularly when fear collides with tight supply and speculative positioning. With weeks of chatter around "triple digit silver" already energising retail traders, Monday's tape could prove decisive.

For metals desks, the focus is not whether precious metals will gap up, but how large that gap will be and whether it sustains. When the Multi Commodity Exchange reopens, traders will track three key signals: the size of the opening jump in gold and silver futures, the durability of safe haven buying once the first shock fades, and whether Indian retail investors chase higher prices or use the spike to book profits.

"The escalation in the conflict is expected to fuel uncertainty in global financial markets. Investors are likely to increase exposure to gold and silver, and we anticipate a gap up opening in precious metals," a market expert said.

On the global front, COMEX gold is facing resistance near $5,300 per ounce. Analysts say a sustained breakout above that level could lift domestic gold prices toward Rs 1,68,000 to Rs 1,70,000 per 10 grams.

At home, MCX Gold has already broken decisively above Rs 1,60,000 after emerging from a consolidation phase and is stabilising near Rs 1,62,000. As long as it holds above Rs 1,60,000, analysts see potential for a move toward Rs 1,63,500 to Rs 1,65,000 in the near term.

Silver's momentum appears stronger. MCX Silver has rallied toward the Rs 2,80,000 to Rs 2,85,000 range. If prices sustain above key support levels, analysts expect further gains toward Rs 2,90,000 to Rs 2,95,000.

Oil on the boil too

Oil markets are also on edge. Israel launched attacks on Tehran after nuclear de escalation talks between the US and Iran failed to reach an understanding, with Washington backing Israel's action. Iran has retaliated. Analysts warn crude could test $80 per barrel if supply disruptions materialise.

Equity strategists remain cautious. Bajaj Broking said volatility is likely to stay elevated, flagging resistance between 25,400 and 24,500 and warning that weakness below 25,141 could open downside toward 25,000 to 24,800.