Gold and silver prices surged sharply as escalating tensions in the Middle East drove investors toward safe-haven assets. Heightened geopolitical risks following the US–Israel strikes on Iran triggered volatility across global equity markets, boosting demand for precious metals.
In India, 24-carat gold climbed to ₹1,73,090 per 10 grams, marking a strong rebound from recent levels. The rally reflects a sharp increase of nearly ₹6,000 per 10 grams over a short span as buyers rushed to hedge against uncertainty. 22-carat gold also moved higher in line with the broader trend, tracking gains across major cities including Delhi, Mumbai and Chennai.
Silver prices remained firm, trading around ₹2.94 lakh per kilogram in domestic markets. On the Multi Commodity Exchange (MCX), silver witnessed heightened volatility but held near elevated levels as investment inflows supported prices.
Globally, spot gold prices rallied significantly, supported by safe-haven flows and concerns that the conflict could widen, impacting oil supply routes and global trade. Rising crude oil prices have added to inflation concerns, further strengthening gold’s appeal as a hedge. US gold futures also advanced in tandem with spot prices.
Market analysts say geopolitical instability typically benefits bullion, especially gold, which is considered a long-term store of value during crises. Exchange-traded funds (ETFs) backed by gold and silver also recorded increased inflows, reflecting institutional participation in the rally.
However, experts caution that bullion prices may remain volatile in the near term. Movements in the US dollar, global bond yields and further developments in the Middle East will likely dictate the next trend. If tensions persist or escalate further, gold could test higher levels, while silver may continue to track both safe-haven demand and industrial outlook.