Gold, silver prices jump 3 pc as safe haven demand grows amid Israel-Iran war
New Delhi, March 2 : Gold and silver prices jumped over 3 per cent on Monday, after the US-Iran war intensified amid Israeli strikes on Iran and the US bases in the Gulf, reinforcing safe-haven demand.
MCX gold April futures gained 3.12 per cent to Rs 1,67,155 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 3.04 per cent to Rs 2,91,249 per kg.
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, further heightening uncertainty.
US-Israel joint strikes on Iran on Sunday that killed Supreme Leader Ayatollah Ali Khamenei, marked an unprecedented escalation in the region. Safe haven demand surged as markets went into risk-off mode, fearing a broader regional conflict that could destabilise the Middle East and disrupt crude flows through the Strait of Hormuz.
"Gold extended gains from last week amid the US-Iran war while the lingering uncertainty over the tariff stance of US President Donald Trump added another layer of macro risk," said Manav Modi, commodities analyst, Motilal Oswal Financial services Ltd.
The dollar index surged 0.24 per cent to 97.85, making greenback-backed bullion expensive for buyers in overseas currencies, capping further gains in the yellow metal.
Crude oil prices jumped over 7 per cent, as market participants fear US-Iran war will have broader regional ramifications that will lead to a major supply disruption.
Investors now look for cues from key manufacturing PMI releases from major economies, while broader direction this week will hinge on the US labour market data.
The recent rally in gold followed a 64 per cent surge in 2025, driven by strong central bank buying, robust inflows into exchange‑traded funds and expectations of US monetary easing.
JP Morgan forecasts chances of gold touching $6,300 an ounce by the end of 2026, while Bank of America flags a rally toward the $6,000 level.
—IANS
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