New Delhi: Gold and silver prices in India recorded a sharp rally on Monday as escalating tensions in West Asia triggered a global flight to safety. Investors shifted funds away from equities and other riskier assets, increasing allocations to traditional safe-haven instruments such as bullion.
The surge in gold and silver prices in India follows coordinated strikes by the United States and Israel on Iran over the weekend, which intensified geopolitical uncertainty across the Gulf region.
Bullion Gains Momentum on MCX
According to data from the Multi Commodity Exchange of India (MCX), gold futures were trading 2.87% higher during early morning trade on Monday. Silver futures also climbed 2.99%, reflecting strong investor demand.
In the physical market, gold prices jumped significantly to Rs 1,73,090 per 10 grams, compared to Rs 1,62,490 in the previous session.silver prices in India also surged to Rs 2,94,900 per kilogram, up from Rs 2,82,140 on Friday.
The sharp increase in gold and silver prices in India highlights the growing risk aversion among investors as geopolitical tensions escalate.
Rising Geopolitical Tensions Fuel Safe-Haven Demand
The latest rally in bullion prices comes after reports that Iran’s Supreme Leader, Ali Khamenei, was killed during joint US-Israel military operations. Tehran responded with multiple waves of missile attacks targeting locations in Israel and US military facilities in Qatar, the United Arab Emirates, Kuwait and Bahrain.
The intensifying conflict has reduced global risk appetite, prompting investors to seek safety in gold and silver. Analysts believe that continued uncertainty around diplomatic negotiations and military escalation could keep gold and silver prices in India elevated in the near term.
Apart from geopolitical concerns, gold has also been supported by persistent global economic uncertainty and evolving foreign policy developments under US President Donald Trump.
Supply Concerns May Add Further Pressure
Supply disruptions could further support the upward trend in gold and silver prices in India. A report by Reuters indicated that physical gold shipments from Dubai — a key global bullion hub and a major supplier to India — may face interruptions due to flight cancellations linked to regional tensions.
Since gold imports are typically transported by air for security and insurance reasons, any prolonged air traffic disruption could tighten domestic supplies and increase price volatility.
Also read : Sensex Crashes 961 Points; Indian Stock Market Outlook Turns Weak on Iran Conflict
City-Wise Gold Rates
Gold prices across major Indian cities witnessed notable increases. In Chennai, 24K gold was priced at Rs 17,210 per gram, while 22K gold stood at Rs 15,776 per gram. In Mumbai and Kolkata, 24K gold was quoted at Rs 17,309 per gram and 22K gold at Rs 15,866 per gram.
In Delhi, 24K gold was priced at Rs 17,324 per gram, with 22K gold at Rs 15,881 per gram. Similar price trends were observed in Bengaluru, Hyderabad, Kerala, and Pune. Ahmedabad and Vadodara also recorded firm prices, reflecting the nationwide surge in bullion demand.
Silver Rates Across Cities
Silver prices also strengthened across major markets. In Mumbai, silver was trading at Rs 2,81,630 per kilogram, while in Delhi it was priced at Rs 2,81,140 per kilogram. Bengaluru recorded Rs 2,81,850 per kilogram, Chennai Rs 2,82,450, Hyderabad Rs 2,82,080, and Kolkata Rs 2,81,260 per kilogram.
The steady climb in silver prices mirrors the broader upward momentum seen in gold.
International Markets Support Rally
Globally, bullion markets also remained firm. Spot gold rose up to 2% in early trade to $5,368.09 per ounce, marking its highest level in over four weeks. US gold futures gained 2.58% to $5,382.60 per ounce. Silver prices followed suit, with spot silver rising 1.68% to $95.35 per ounce.
The combined impact of military escalation, uncertainty over diplomatic channels, and potential supply bottlenecks has reinforced bullion’s role as a defensive asset.
Outlook for Gold and Silver Prices in India
The current surge in gold and silver prices in India underscores bullion’s traditional status as a safe-haven investment during periods of geopolitical instability. With tensions in the Gulf region showing no immediate signs of easing, traders are bracing for continued volatility.
Market participants will closely monitor further developments in West Asia, global economic signals, and supply chain disruptions, all of which could influence the near-term direction of bullion prices.