Gold rate today: Gold prices witnessed a sharp rally on Monday, March 2, tracking strong gains in global bullion markets amid intensifying tensions in the Middle East.
Gold prices today surged after the US and Israel launched a major strike on Iran, reportedly resulting in the death of Supreme Leader Ayatollah Ali Khamenei and heightening global economic uncertainty.
MCX gold for April futures began the session up ₹3,397, or 2.09%, at ₹1,65,501 per 10 grams, compared with the previous close of ₹1,62,104. During the session, prices surged as much as 3.88% to touch a high of ₹1,68,378.
Meanwhile, on the international front, COMEX gold prices surged to $5,400 per ounce during the intraday session on Monday.
“The rising tensions between the US and Iran have increased geopolitical risks, which are a major driver for safe-haven assets such as gold. If the US-Iran conflict continues, the risk premium for investors would increase, pushing gold prices in India to new records,” said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
Can gold prices in India climb to a new peak amid the US-Iran war?
Kamboj further explained that gold has traditionally been a safe-haven asset for investors, and the sustained demand for gold could boost prices to new highs.
“Inflationary pressures due to rising crude oil prices following the disruption in the Middle East could also elevate the prices. However, the extent of the rally would depend on the outcome of the conflict, the monetary policy stance, and currency value. While the prices could surge in the short term, investors should keep a check on the overall scenario,” Kamboj said.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, highlighted that as global equities and risk assets come under pressure, capital tends to shift into precious metals, which act as a hedge against uncertainty.
Trivedi further noted that earlier moves have already pushed gold and silver prices higher in recent sessions, and this momentum could continue if the conflict intensifies further.
How much rally in gold can we expect?
Kaynat Chainwala, AVP – Commodity Research, Kotak Securities, believes that bullion prices may remain elevated as Trump indicated that military operations against Iran could continue for “four to five weeks,” while also expressing willingness to ease sanctions should Iran’s new leadership demonstrate a pragmatic approach.
However, further upside is likely to depend on the severity of escalation, as much of the current geopolitical risk appears to be priced in, Chainwala noted.
“A significant event, such as a confirmed large-scale Iranian attack on a U.S. aircraft carrier like the USS Abraham Lincoln amid Gulf deployments, would likely trigger strong U.S. retaliation and fuel another wave of safe-haven buying, potentially pushing precious metals to new highs,” she added.
On the technical outlook, Ponmudi R, CEO of Enrich Money, said that MCX Gold futures are trading in the 1,65,000–1,70,000 range after consolidating post the sharp correction from all-time highs near 1,80,000–1,81,000.
Ponmudi added that while price currently in short-term consolidation with a positive tilt, holding firm above critical support zones.
“Robust buying interest persists in the ₹1,58,000–1,62,000 demand band following the recent surge driven by Middle East tensions. A sustained hold above this base, followed by a breakout above 1,65,000, may revive momentum toward 1,70,000–1,75,000, preserving a bullish medium-term perspective,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
