New Delhi, India — March 2, 2026
Escalating geopolitical tensions in the Middle East, particularly between Israel and Iran, triggered a sharp rally in precious metals on Monday. Gold prices in India climbed by more than ₹8,000, while silver surged by over ₹23,000, reflecting heightened safe-haven demand among investors.
The rally mirrors global uncertainty as markets react to widening regional conflict risks.
Sharp Jump in Gold and Silver Prices
According to data from the India Bullion and Jewellers Association, domestic bullion prices recorded significant gains:
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24-carat gold rose ₹8,374 to ₹1,67,471 per 10 grams, up from ₹1,59,097 on Friday.
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22-carat gold increased to ₹1,53,403 per 10 grams from ₹1,45,733.
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18-carat gold climbed to ₹1,25,603 per 10 grams from ₹1,19,323.
Silver also witnessed a substantial surge. Prices jumped ₹23,148 to ₹2,89,848 per kilogram, compared with ₹2,66,700 previously.
The rally reflects investor preference for safer assets amid geopolitical uncertainty.
Futures Market Mirrors Spot Rally
Momentum extended into the derivatives market as well.
On the Multi Commodity Exchange of India (MCX):
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The April 2, 2026 gold contract gained 4.09% to ₹1,68,740.
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The May 5, 2026 silver contract rose 4.49% to ₹2,95,336.
Global markets also reflected strong upward movement. On COMEX, gold was trading 2.78% higher at $5,397 per ounce, while silver gained 1.90% to $95.09 per ounce at the time of reporting.
Why Prices Are Rising
The surge is largely attributed to escalating conflict risks in the Middle East, which have prompted investors to shift capital into traditionally safer assets such as gold and silver.
Future price movement will depend on global economic indicators and broader risk sentiment. According to Trivedi, if gold sustains levels above ₹1,64,000, bullish momentum may continue, with resistance seen near ₹1,72,000.
Market Outlook
Precious metals typically benefit during periods of geopolitical uncertainty, inflationary pressures, and currency volatility. With energy markets also experiencing sharp fluctuations, investor demand for hedging instruments has intensified.
Analysts caution that volatility may persist in the near term as markets closely track geopolitical developments and macroeconomic data releases.
