Mumbai, March 20 : Gold and silver on Friday witnessed a substantial rise in prices, with both precious metals gaining 3 per cent amid hopes of easing tensions in West Asia.

On the Multi Commodity Exchange (MCX), gold futures (April 2) touched an intra-day high of Rs 1,48,302 per 10 grams at around 10:45 am, up 2.30 per cent or Rs 3,348. During the session so far, gold hit a low of Rs 1,47,401. At the last count, the yellow metal was trading at Rs 1,47,534, up Rs 2,580 or 1.78 per cent.

Similarly, silver futures (May 5) rose as much as 3.68 per cent, or Rs 8,540, to Rs 2,40,000 per kg. In intra-day trade, silver hit a low of Rs 2,37,300. It was last trading at Rs 2,36,903, up Rs 5,443 or 2.35 per cent.

In international markets, both gold and silver were trading higher. Comex gold rose 2.40 per cent to $4,716 per ounce, while silver gained 3.61 per cent to $73.78 per ounce.

According to Manav Modi, commodities analyst at Motilal Oswal Financial Services, gold prices stabilised in early trade but are still heading towards their worst weekly decline in six years. He said the recent fall in gold was driven by rising inflation expectations due to the ongoing US-Israel conflict with Iran, along with reduced expectations of interest rate cuts in the near term.

The analyst added that safe-haven demand for gold has been weighed down by a sharp rise in the US dollar and Treasury yields, while elevated oil prices have further heightened concerns over inflation and supply disruptions.

Gold and silver had witnessed a sharp decline on Thursday, with gold slipping to around Rs 1.44 lakh per 10 grams and silver to about Rs 2.20 lakh per kg.

According to experts, MCX gold is trading above key support levels near Rs 1,47,000, with immediate resistance seen in the Rs 1,50,000â??1,52,000 range, while silver remains in a range-bound zone with support near Rs 2,33,000 and resistance around Rs 2,43,000â??2,46,000.

/IANS