New Delhi, March 2: Gold and silver prices witnessed a sharp rally on Monday as escalating geopolitical tensions in the Middle East drove investors toward safe-haven assets. The surge followed large-scale military strikes by the United States and Israel on Iran, significantly heightening global uncertainty.
Strong Rally in Domestic Markets
On the Multi Commodity Exchange of India (MCX), gold futures for April 2026 delivery climbed ₹5,811, or 3.5 per cent, to trade at ₹1,67,915 per 10 grams. Silver futures for March 2026 delivery advanced ₹9,492, also rising 3.5 per cent, to ₹2,84,490 per kilogram.
Silver ETFs Record Sharp Gains
Silver exchange-traded funds (ETFs) recorded significant gains during intraday trade:
Angel One Silver ETF surged nearly 18 per cent.
Tata Group Silver ETF gained around 13 per cent.
Zerodha Silver ETF rose about 10 per cent.
Other funds in the segment registered gains between 8 and 9 per cent.
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The rally reflects increased investor demand for precious metals amid heightened geopolitical risks.
In the global market, spot gold rose 1 per cent to $5,329.39 per ounce, after touching its strongest level in over four weeks. US gold futures gained 1.8 per cent to $5,342.80 per ounce.
The upward movement follows reports of the death of Iran’s Supreme Leader, Ali Khamenei, intensifying concerns of broader regional instability.
Market analysts suggest that precious metals are likely to remain supported as long as geopolitical tensions persist. Any sustained rise in crude oil prices, particularly with risks surrounding key supply routes such as the Strait of Hormuz, could further strengthen safe-haven demand.
However, clarity on leadership developments in Iran and signs of diplomatic de-escalation may ease the current conflict-driven premium in gold prices.
