Gold and silver held firm on Friday, 20 February, with investors gravitating toward safe-haven assets amid rising Middle East tensions and military mobilization by both Iran and the US, despite the US Dollar Index being on course for its biggest weekly surge since October.
The April futures contract on Comex jumped $71 per troy ounce to a day’s high of $5,068, positioning itself to extend its weekly winning run to a third consecutive week.
Statements from the US and Iran indicate a potential war in the Middle East. US President Donald Trump warned Iran on Thursday that it must make a deal over its nuclear program or “really bad things” would happen and set Tehran a deadline of 10 to 15 days to cooperate.
At the same time, the US has reportedly deployed its largest military buildup in the Middle East since the 2003 Iraq invasion, raising the prospect of a broader and more sustained operation than last June’s overnight strike on Iran’s nuclear facilities.
In response, Iran reportedly said it would retaliate against US bases in the region if attacked, which led to a strong rally in global crude oil prices.
Geopolitical and economic flashpoints tend to work in gold’s favour, as the yellow metal is traditionally viewed as a safe store of value.
Meanwhile, the minutes from the US Federal Reserve’s January meeting showed that policymakers are divided between officials who are worried about supporting the labor market and those who are more concerned about inflation.
Markets currently expect the first interest rate cut in June, according to CME’s FedWatch Tool.
On the economic front, US growth softened in the fourth quarter of 2025, expanding 1.4%, which was far below the 3% gain forecast by economists polled by Reuters. Investors are now awaiting the release of US Personal Consumption data, due later today.
Looking at the US Dollar Index, which measures the greenback against a basket of currencies, it nudged slightly higher on Friday and was last set for a weekly rise of about 1.1%.
Comex silver advances $3.5
Silver, which has remained more volatile than gold, also traded higher, with the March delivery contract on Comex rising $3.47 per troy ounce to touch an intraday high of $81.1, extending its bull run to a third straight session.
Hareesh V, Head of Commodity Research at Geojit Investments Limited, said, “Rising US–Iran tensions have already driven investors toward bullion, pushing gold close to the $5,000 mark as safe-haven demand strengthens. Investors typically turn to gold and silver during geopolitical conflicts because these metals preserve value, reduce exposure to market volatility, and serve as trusted hedges when currencies and financial markets face uncertainty.”
Although a stronger dollar and shifting interest-rate expectations may temporarily cap sharp gains, he believes that persistent or escalating tensions are likely to keep risk-averse flows elevated, potentially supporting a further rise in gold and silver prices in the coming days.
MCX gold jumps over ₹₹2,100 per 10g; silver top ₹Rs 2.50 lakh per kg
In the domestic market, April gold futures gained ₹2,136 per 10 grams to hit an intraday high of ₹1,56,955 earlier in the day.
The March silver contract also strengthened by ₹10,674 per kilogram to reach an intraday high of ₹2,52,067, extending its winning run to a second session.
(With inputs from Reuters)
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