Trending / Gold and Silver Prices Surge as US-Iran war escalates
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Gold and silver surged over 3 per cent as US-Israel strikes on Iran escalated conflict, boosting safe-haven demand. Crude oil also spiked, raising fears of supply disruption and global volatility.
New Delhi, Mar 2: Gold and silver prices soared over 3 per cent on Monday as the intensifying US-Iran war, compounded by Israeli strikes on Iran and US bases in the Gulf, reinforced safe-haven demand.
On the Multi Commodity Exchange (MCX), April gold futures surged 3.12 per cent to ₹1,67,155 per 10 grams on an intra-day basis. Silver March futures gained 3.04 per cent to ₹2,91,249 per kg. The sharp rally reflected heightened geopolitical uncertainty and investor flight to safety.
Israeli strikes on Tehran targeting command centres and air
defences were met with retaliatory missile attacks on Israeli territory and US
bases in the Gulf. The joint US-Israel strikes on Sunday that killed Iran’s
Supreme Leader Ayatollah Ali Khamenei marked an unprecedented escalation,
raising fears of a broader regional conflict and disruption of crude flows
through the Strait of Hormuz.
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“Gold extended gains from last week amid the US-Iran war
while lingering uncertainty over US tariff policy added another layer of macro
risk,” said Manav Modi, commodities analyst at Motilal Oswal Financial
Services.
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The dollar index rose 0.24 per cent to 97.85, making
dollar-backed bullion more expensive for overseas buyers and capping further
gains. Meanwhile, crude oil prices jumped over 7 per cent, reflecting fears of
major supply disruptions.
Investors are now awaiting key manufacturing PMI releases
and US labour market data for broader cues. The recent rally in gold follows a
64 per cent surge in 2025, driven by strong central bank buying, ETF inflows,
and expectations of US monetary easing.
Watch today’s gold rate here. Read more for daily updates.
JP Morgan forecasts gold could touch $6,300 an ounce by the
end of 2026, while Bank of America projects a rally toward $6,000, underscoring
bullish sentiment amid geopolitical and macroeconomic risks.
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