Gold Prices Surge as Middle East Tensions Rise, Safe-Haven Demand Pushes Rates Higher
Gold Price Today: Gold prices witnessed a sharp rally on Monday as escalating geopolitical tensions in the Middle East triggered strong safe-haven buying across global markets. Heightened conflict involving Israel, Iran, and the United States has made investors cautious, driving them toward precious metals, traditionally considered a hedge against uncertainty.
Gold jumps over 2% in global markets
In early international trade, gold prices climbed by more than 2 percent, touching around $5,390 per ounce, as traders reacted to fresh developments in the Middle East. Market analysts say that rising military confrontation has significantly increased risk aversion, boosting demand for gold and silver.
The surge reflects growing concerns that the conflict could intensify further, potentially disrupting global trade routes, energy supplies, and financial stability.
Domestic gold prices hit fresh highs
The impact of global uncertainty is clearly visible in India’s bullion markets. On March 2, the price of 24-carat gold in Delhi rose to ₹1,73,240 per 10 grams, while Mumbai recorded ₹1,73,090 per 10 grams. Over the past one week alone, 24-carat gold has become costlier by ₹9,430, marking one of the sharpest weekly gains in recent months.
Meanwhile, 22-carat gold prices increased by ₹8,550 per 10 grams, reflecting strong retail and investment demand amid global turmoil.
What’s driving the rally?
The sharp rise in gold prices follows major geopolitical developments in the Middle East. On February 28, 2026, Israel and the United States reportedly launched air strikes against Iran. Within hours, Iran responded with missile and drone attacks targeting Israel and several other countries in the region.
The situation escalated rapidly, raising fears of a prolonged regional conflict. Reports also suggest that Iran suffered significant leadership losses in the early phase of the confrontation, further intensifying uncertainty across global markets.
Experts believe that if hostilities continue or widen, precious metals could see additional upside, as investors move funds away from equities and other risk-heavy assets.
City-wise gold rates in India
Here’s a snapshot of gold prices across major Indian cities (per 10 grams):
| City | 22 Carat (₹) | 24 Carat (₹) |
|---|---|---|
| Delhi | 1,58,810 | 1,73,240 |
| Mumbai | 1,58,660 | 1,73,090 |
| Ahmedabad | 1,58,710 | 1,73,140 |
| Chennai | 1,58,660 | 1,73,090 |
| Kolkata | 1,58,660 | 1,73,090 |
| Hyderabad | 1,58,660 | 1,73,090 |
| Jaipur | 1,58,810 | 1,73,240 |
| Bhopal | 1,58,710 | 1,73,140 |
| Lucknow | 1,58,810 | 1,73,240 |
| Chandigarh | 1,58,810 | 1,73,240 |
Prices may vary slightly depending on local taxes, making charges, and jeweller margins.
Silver shows volatility
Silver prices, however, displayed mixed movement. On Monday morning, silver was trading around ₹2,94,900 per kilogram, showing mild weakness. Despite the dip, silver has surged by nearly ₹20,000 per kilogram over the past week, underlining strong speculative and industrial demand.
Earlier, on February 27, silver prices in Delhi’s bullion market slipped by about ₹2,500 per kilogram, but analysts say volatility is likely to persist due to global uncertainty.
Outlook for investors
Market experts advise investors to remain cautious in the short term. While geopolitical tensions are supporting gold prices, sharp swings cannot be ruled out if there is any diplomatic breakthrough. Long-term investors, however, may continue to view gold as a strategic hedge against inflation and global instability.
