New Delhi: Gold and silver prices surged on March 2 amid heightened geopolitical tensions linked to the US-Israel-Iran conflict, with investors turning to precious metals as safe-haven assets.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold rose by Rs 7,000 to Rs 1.66 lakh, up from Rs 1.59 lakh previously.
Silver recorded an even sharper rise. The price of one kilogram increased by Rs 20,000 to Rs 2.87 lakh, compared with Rs 2.67 lakh earlier.
Commodity market expert Ajay Kedia said the rally could continue, projecting that gold may reach Rs 1.90 lakh per 10 grams, while silver could climb to Rs 3.50 lakh per kg if global uncertainty persists.
Analysts say investors typically shift towards gold during periods of war and instability, viewing it as a relatively secure store of value. The ongoing tensions in West Asia, along with stalled Russia-Ukraine negotiations, have heightened risk aversion in global markets.
Three major factors are driving the latest surge:
Global tensions: Escalating conflict in the Middle East and uncertainty in Eastern Europe have triggered increased demand for safe assets such as gold and silver.
Expectations of US Federal Reserve rate cuts: Indications that the US Federal Reserve may lower interest rates this year have strengthened demand for commodities. Lower interest rates tend to weaken the dollar and make gold more attractive.
Buying after recent correction: Following a recent dip in prices, investors and jewellers stepped in to purchase at comparatively lower levels, further pushing up demand.
So far this year, precious metals have recorded significant gains. At the end of last year, gold was priced at Rs 1.33 lakh per 10 grams; it has since climbed to Rs 1.66 lakh, marking an increase of Rs 56,000. Silver has risen by Rs 61,000 over the same period.
Market watchers say volatility is likely to persist as geopolitical developments unfold and global monetary policy signals become clearer.
