Gold & Silver Surge as Iran-Israel Conflict Escalates
GOLD Price Chart
Sentiment vs Price Trend GOLD
Correlating market mood with price action
Gold and silver prices experienced a significant surge on March 2, 2026, driven by escalating geopolitical tensions following joint US-Israeli military strikes on Iran, resulting in the death of Supreme Leader Ayatollah Ali Khamenei and subsequent retaliatory attacks. Gold futures on the MCX jumped over 5%, reaching ₹1,67,059/10g, while silver skyrocketed nearly 9% to ₹2,90,308/1kg. Globally, spot gold surpassed $5,350/oz, hitting a multi-week high. The surge reflects a flight to safety as investors seek haven assets amid fears of regional instability and potential disruptions to global oil supply, particularly through the Strait of Hormuz, which Iran has partially closed. Crude oil prices also rose sharply, exceeding 7%. Experts anticipate further price increases in precious metals if the conflict persists, citing increased risk premiums and potential inflationary pressures from rising oil prices. While some investors may consider booking profits, the prevailing sentiment leans towards holding investments given the uncertain geopolitical landscape. Shipping has been disrupted, with major companies rerouting vessels.
Key Points
- 1Gold prices on MCX rose over 5% to ₹1,67,059/10g, silver jumped nearly 9% to ₹2,90,308/1kg.
- 2Global spot gold exceeded $5,350/oz, driven by safe-haven demand.
- 3The conflict has disrupted oil supply routes, with Iran closing the Strait of Hormuz and attacks on tankers.
Market Impact
The conflict is driving a risk-off sentiment, boosting demand for safe-haven assets like gold and silver while negatively impacting stock markets and potentially fueling inflationary pressures due to rising oil prices. Marine insurance rates are also expected to increase significantly.