Gold prices surge amid US-Iran conflict; 10 grams may touch Rs 2 lakh mark

Bengaluru: Escalating tensions between the United States and Iran, coupled with reported strikes involving Israel, have rattled global markets, sending crude oil and bullion prices sharply higher.

As geopolitical uncertainty deepens, analysts warn that gold prices in India could soon breach the psychological mark of Rs 2 lakh per 10 grams if the conflict intensifies further. Gold, traditionally considered a safe-haven asset during times of crisis, had witnessed a brief correction in early February.

However, renewed hostilities in the Middle East have reversed the trend, triggering a strong upward momentum. The ongoing wedding season in India typically boosts demand for gold jewellery, but the current price spike has left buyers concerned.

As per the latest market data (March 1), 24-carat gold — regarded as pure gold — has surged by Rs 7,140 per 10 grams and is trading at Rs 1,68,710. Meanwhile, 22-carat gold, widely used in jewellery making, has jumped by Rs 6,550 to Rs 1,54,650 per 10 grams. The price of 18-carat gold has also risen by Rs 5,350 and is currently trading at Rs 1,26,530 per 10 grams.

On a per gram basis across India, 24-carat gold is priced at Rs 16,871, while 22-carat gold stands at Rs 15,463 and 18-carat gold at Rs 12,653. Silver, too, has seen a significant rally, with prices touching Rs 295 per gram.

In Bengaluru, bullion rates mirror national trends. The price of 24-carat gold is Rs 16,871 per gram, while 22-carat gold is trading at Rs 15,463 per gram. Silver remains at Rs 295 per gram in the city.

The Multi Commodity Exchange (MCX) remained closed over the weekend, keeping prices stable temporarily. Currently, April gold futures on MCX are trading around Rs 1,61,971 per 10 grams, while silver futures are hovering near Rs 2,74,389 per kilogram.

Market experts anticipate further volatility when trading resumes on Monday, especially if geopolitical tensions escalate. In a single day, gold prices reportedly surged by over Rs 7,000 per 10 grams, while silver gained nearly Rs 25,000 per kilogram.

Missile exchanges and rising oil prices have fueled investor panic, prompting a rush toward safe assets like gold and silver. If the conflict persists, bullion markets may witness unprecedented highs, significantly impacting consumers, jewellers, and investors alike.

Also Read: Israel-Iran war: All flight cancel for these countries till March 6