Gold rates and silver rates in India surged on February 20th as tensions between US and Iran escalates. MCX gold witnessed mild buying sentiment, however, price remained around Rs 1.53 lakh per 10 grams. Further, MCX silver also gained marginally to trade above Rs 2.43 lakh. This comes amidst positive global cues with spot gold price traded over $5,010 mark.
The gains in precious metals is limited due to upside momentum in dollar against basket of currencies. The greenback surged above 98 level and is trading to record approximately 1% gains for this week. The upside in dollar is attributed to the hawkish stance seen in minutes of meeting of US Federal Reserve.

Coming to US and Iran tensions, reports are saying that the two countries could go for a war as US has deployed its largest military force in the Middle East for the first time since the invasion of Iraq in 2003. Earlier, President Donald Trump had set a 10-15 days deadline for nuclear talks.
Traders focus also shifts towards PCE data which is scheduled later on Friday. January FOMC minutes also showed policymakers divided on rates, with some signaling possible hikes if inflation remains elevated.
Meanwhile, physical demand for precious metals in Asia is also seasonally lacklustre owing to Lunar New Year holidays in major markets like China, Taiwan and Singapore. As of now, global bullion is likely to see modest loss this week.
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