Gold & Silver Surge as US-Iran Conflict Escalates
GOLD Price Chart
Gold and silver prices experienced a significant surge on March 2, 2026, driven by escalating geopolitical tensions following coordinated US and Israeli military strikes on Iran, resulting in the death of Supreme Leader Ali Khamenei. Gold futures on the MCX jumped over 3.5%, reaching ₹1,67,915 per 10 grams, while silver futures climbed to ₹2,84,490 per kilogram. Globally, spot gold exceeded $5,350 per ounce, hitting a four-week high, and silver rose to nearly $97 per ounce. Analysts attribute the rally to a flight to safe-haven assets amid fears of prolonged conflict and potential disruptions to oil supplies. Central bank demand, particularly from China and India, continues to support gold's upward trajectory, with some analysts predicting prices could reach $6,000-$8,500 per ounce by year-end. The surge marks gold’s seventh consecutive monthly gain, the longest such streak since 1973. Investors are closely monitoring the Federal Reserve’s interest rate policy alongside the evolving geopolitical situation.
Key Points
- 1US-Israel strikes on Iran triggered a safe-haven rush into gold and silver.
- 2Gold futures on MCX and global spot prices saw gains exceeding 3%.
- 3Central bank demand and geopolitical instability are key drivers of the rally.
Market Impact
The price surge reflects heightened risk aversion in global financial markets. Continued escalation of the conflict could further boost precious metal prices, while de-escalation may lead to a correction, though underlying demand remains strong.