Gold And Silver Prices Surge On March 2 As Iran-Israel Conflict Sparks Safe-Haven Rush

MCX gold crosses ₹1.67 lakh per 10 grams; silver jumps nearly 4% amid global uncertainty

Gold and silver prices witnessed a sharp rally on March 2, 2026, as escalating tensions in West Asia triggered a flight to safe-haven assets.

Following major US and Israeli strikes on Iran, global markets reacted strongly, pushing bullion prices higher in both domestic and international markets. Investors shifted funds from riskier assets such as equities to gold, amid fears of a prolonged geopolitical conflict and potential disruptions in oil supply chains.

On the Multi Commodity Exchange (MCX), gold for April futures opened ₹3,397 higher, or 2.09%, at ₹1,65,501 per 10 grams compared to the previous close of ₹1,62,104. During the session, prices surged 3.5% to touch a high of ₹1,66,920 per 10 grams.

Silver prices also rallied sharply. MCX silver for May contracts rose by ₹10,508, or 3.71%, reaching a high of ₹2,93,152 per kilogram against the previous close of ₹2,82,644.

International Market Reaction

In the global market, spot gold climbed 1% to $5,329.39 per ounce after hitting its highest level in more than four weeks. US gold futures rose 1.8% to $5,342.80 per ounce. Silver prices jumped as much as 2.8% to $96.4 per ounce before trimming some gains.

Gold recorded its seventh consecutive monthly gain in February — the longest winning streak since 1973. The rally builds on a 64% surge in 2025, supported by strong central bank purchases, inflows into exchange-traded funds and expectations of monetary policy easing in the United States.

Expert View: What Next For Gold?

Ajay Kedia, Director, Kedia Advisory, said the broader trend remains positive as long as prices stay above key moving averages.

“Major resistance lies at ₹1,70,000 and support at ₹1,65,000 levels. As long as MCX gold price is trading in this range, we can expect a sideways to positive trend in the yellow metal. Meanwhile, the negative developments over the US-Israel-Iran war will continue to provide upside for gold as a safe haven,” he said.

He suggested a “buy on drop” strategy for traders, while cautioning that short-term fluctuations due to profit-booking are possible.

Supply Disruptions Add To Momentum

The conflict has also disrupted physical gold supply chains. A significant volume of gold is transported by air from Dubai to major markets such as India, Switzerland and Hong Kong. However, flight cancellations amid heightened security concerns have temporarily impacted shipments.

Industry sources indicate that physical gold movement may remain restricted for the next few days, adding further pressure to prices.

Investors are now closely monitoring developments in West Asia. Analysts warn that if tensions escalate further, gold could test new record highs, though volatility is expected in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult certified financial advisors before making trading or investment decisions.