MCX gold surges 4.36%, crosses Rs 1.69 lakh; silver jumps 4.9% as war fears grip markets

Gold, Silver Prices Today: Gold and silver prices surged sharply on March 2 as investors rushed to safe-haven assets amid an intensifying war in the Middle East. Rising geopolitical risks lifted global bullion prices and triggered heavy buying in Indian futures, even as physical gold prices slipped across domestic markets.

On the Multi Commodity Exchange, bullion prices extended gains through the afternoon session. At 13:33 IST, MCX gold was trading at Rs 1,69,161 per 10 grams, up Rs 7,057 or 4.35 per cent from its previous close of Rs 1,62,104. Silver outpaced gold, with MCX silver jumping Rs 14,649 or 5.18 per cent to Rs 2,97,293 per kg, compared with Rs 2,82,644 earlier.

Overseas markets reflected similar strength. On the COMEX, gold climbed 3.28 per cent to $5,420.10 per ounce, while silver rose 3.35 per cent to $96.415 per ounce, taking both metals to near one‑month highs.

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War escalation drives safe-haven demand

The rally followed a sharp escalation in the Middle East conflict after US and Israeli strikes on Iran over the weekend. Several senior Iranian commanders were killed, including Supreme Leader Ali Khamenei, prompting retaliatory missile attacks by Iran across Israel and US military bases in the region.

The conflict has since widened, drawing in Jordan, Qatar, Kuwait, Oman, Bahrain and the UAE. Market participants are closely watching developments around the Strait of Hormuz, a critical global energy route, amid fears of prolonged disruption to trade and supply chains.

Amid the rising tensions, the UAE announced a two‑day stock market holiday, while Hezbollah joined Iran in launching fresh attacks against Israel.

Silver outshines gold in physical market

In India’s spot market, silver clearly outperformed gold. Silver prices surged to Rs 3.30 lakh per kg, up sharply from Rs 2.95 lakh in the previous session.

Revised silver prices across weights were:

1 gram: Rs 330 (up Rs 35)

8 grams: Rs 2,640 (up Rs 280)

10 grams: Rs 3,300 (up Rs 350)

100 grams: Rs 33,000 (up Rs 3,500)

1 kg: Rs 3,30,000 (up Rs 35,000)

Traders said silver saw stronger speculative and industrial demand compared with gold.

Physical gold slips despite futures rally

In contrast, physical gold prices in India fell sharply across purity levels, even as MCX and global prices climbed. Dealers attributed the correction to a firmer dollar and uncertainty around the US interest rate outlook.

18‑carat gold

1 gram: Rs 12,735 (down Rs 246)

8 grams: Rs 1,01,880 (down Rs 1,968)

10 grams: Rs 1,27,350 (down Rs 2,460)

100 grams: Rs 12,73,500 (down Rs 24,600)

22‑carat gold

1 gram: Rs 15,565 (down Rs 300)

8 grams: Rs 1,24,520 (down Rs 2,400)

10 grams: Rs 1,55,650 (down Rs 3,000)

100 grams: Rs 15,56,500 (down Rs 30,000)

24‑carat gold

1 gram: Rs 16,980 (down Rs 329)

8 grams: Rs 1,35,840 (down Rs 2,632)

10 grams: Rs 1,69,800 (down Rs 3,290)

100 grams: Rs 16,98,000 (down Rs 32,900)

Jewellers said retail buying remained subdued as customers stayed cautious amid sharp intraday swings.

Fed signals add to volatility

Adding to market uncertainty, recent US data showed producer prices rising more than expected, complicating the outlook for rate cuts by the Federal Reserve. While markets continue to price in two rate cuts later this year, traders said geopolitical risks are currently the dominant driver for bullion.

Gold prices, despite the latest surge, remain nearly 12 per cent below their record high of Rs 1,93,096 per 10 grams, leaving room for further movement depending on how long tensions persist.

For now, precious metals remain firmly supported as global investors seek safety amid escalating conflict and economic uncertainty.