Investors quickly went into bullion as hostilities in West Asia intensified after the United States and Israel launched synchronized strikes on Iran over the weekend.
Funds were diverted from stocks and other erratic assets and placed in conventional hedges like gold and silver in global markets as risk appetite declined. Both domestic and international prices have seen the change.
At 9:10 a.m. on Monday, gold was up 2.87% and silver was up 2.99%, according to the Multi Commodity Exchange website.
Gold, Silver Surge In India
Gold prices in India increased dramatically on Monday in the physical market. Gold’s price increased from Rs 1,62,490 in the previous session to Rs 1,73,090 per 10 grams. According to data from the Bullions website, silver followed suit, increasing from Rs 2,82,140 per kilogram on Friday (February 27) to Rs 2,94,900.
Following Tehran’s repeated waves of missile attacks throughout the area in retaliation for the strikes, the rally indicates heightened geopolitical fear. Ali Khamenei, Iran’s Supreme Leader, was killed on the first day of the attack, according to reports over the weekend.
Concerns of a wider regional escalation were raised by Iran’s retaliatory strikes, which targeted US military installations in Qatar, the United Arab Emirates, Kuwait, and Bahrain in addition to areas in Israel.
In addition to the ongoing fighting, US President Donald Trump’s changing international diplomatic ties and ongoing economic uncertainties have contributed to gold’s steady increase in recent months.
Supply Concerns Add To Pressure
Disruptions on the supply side could intensify the price momentum. Due to aircraft cancellations connected to the tensions, physical gold supplies from Dubai, a significant supplier to India and a major hub for bullion trading, are expected to be reduced in the coming days, according to a Reuters report.
Due to insurance and security issues, gold imports are usually transported by plane. Any protracted interruption to air travel could result in a shortage of supply on the domestic market, increasing price volatility.
Gold, Silver In International Markets
The price of bullion also increased abroad. At 0010 GMT on Monday, spot gold reached $5,368.09 an ounce, its highest level in more than four weeks, after rising as much as 2% in early trading. US gold futures increased by 2.58% to $5,382.60 an ounce.
Spot prices for silver increased 1.68% to $95.35 an ounce, following the trend.
The allure of bullion as a protective asset has been strengthened by the mix of military escalation, doubts about the longevity of diplomatic channels, and possible supply constraints. Traders are currently anticipating more volatility as events spread around the Gulf.
According to market participants, the most recent Middle East escalation is forcing international investors to reevaluate risk. Funds frequently shift into bullion during these times from stocks, real estate, and riskier investments.
Given that trading follows global cues, analysts anticipate that Indian gold and silver prices would reflect this change, particularly in the early hours of Monday.
When stock markets and fiat currencies are under duress, precious metals are frequently seen as a store of value.
Gold and silver have historically had purchasing power throughout protracted hostilities and unrest. Market experts anticipate that bullion will continue to be a focus due to the ongoing US-Iran confrontation, particularly for investors looking to hedge against possible losses.
The creation of domestic prices is also significantly influenced by currency fluctuations. Global benchmarks and the rupee’s value in relation to the US dollar have an impact on silver prices in India.
Even in the absence of new worldwide increases, imported silver becomes more expensive when the rupee declines and international prices stay stable.
Gold and silver prices across Indian cities
GoodReturns keeps track of carat wise variations and gram-wise rates. The price of 24 carat gold has increased by Rs 10 throughout India, and it is currently priced at Rs 17,309 per gram and Rs 1,73,090 for ten grams. In the domestic market, the 22 carat variety costs Rs 15,866 per gram and Rs 1,58,660 for 10 grams.
18-carat gold costs Rs 12,982 per gram and Rs 1,29,820 every ten grams for lesser quality segments. Buyers can examine possibilities for coins, investment bars, and jewellery with the use of these carat-wise differences.
They also demonstrate how purity has a direct impact on price, even in situations where overall market pressures are pushing all market sectors upward.
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The price of silver in India as of March 2, 2026, is Rs 294.90 per gram and Rs 2,94,900 per kilogram. Even while global silver benchmarks have moved significantly over the past week, this indicates stability in comparison to the prior reading, indicating that local factors and currency fluctuations are also influencing short-term retail prices.
