New Delhi, India — March 5, 2026
Precious metal prices moved sharply higher as escalating geopolitical tensions in the Middle East increased demand for safe-haven assets. Gold and silver both recorded significant gains in the latest market update, reflecting growing uncertainty in global markets.
Silver prices surged ₹4,560, pushing the rate to ₹2.70 lakh per kilogram, while gold prices rose by ₹830 to reach ₹1.62 lakh per 10 grams in domestic markets.
Precious Metals Rally as Investors Seek Safety
The rise in gold and silver prices comes amid heightened geopolitical tensions in West Asia, prompting investors to shift toward traditionally safer assets.
Market analysts note that precious metals often experience increased demand during periods of geopolitical instability, as investors look to hedge against economic uncertainty and market volatility.
Global Gold and Silver Prices
In global markets, precious metals also recorded strong gains during Asian trading hours.
Spot gold increased by nearly 1%, reaching around $5,187 per ounce, while spot silver climbed about 2.5% to $85.12 per ounce.
The upward trend reflects strong global demand for precious metals as investors respond to developments in the geopolitical landscape.
Rising Geopolitical Tensions Impact Markets
The surge in precious metal prices comes as tensions escalate between Iran, the United States, and Israel. Reports indicate ongoing airstrikes and missile exchanges across parts of the region, contributing to heightened geopolitical uncertainty.
Strategically important shipping routes such as the Strait of Hormuz, a key global energy supply corridor, have also faced disruptions. This has raised concerns about global energy supply chains and increased volatility in financial markets.
As uncertainty grows, investors typically shift toward assets such as gold and silver, which are widely considered stores of value during periods of instability.
US Economic Data and Dollar Movement
At the same time, recent economic data from the United States showed strong growth in the services sector, marking its fastest expansion since mid-2022. Increased business activity and rising orders have helped ease some concerns about inflation pressures.
Meanwhile, the U.S. Dollar Index slipped to around the 98 level, making commodities priced in dollars—such as gold and silver—more attractive to international investors.
Market expectations regarding interest rates have also shifted. Investors are now anticipating that the U.S. Federal Reserve may begin its next interest rate cut in September rather than July, although expectations remain for two rate cuts of 25 basis points each later this year.
