The ongoing Middle East conflict has driven a rush into gold and silver as investors seek safe-haven assets amid uncertainty in spot markets.
Both precious metals recorded sharp gains in domestic and international markets following the manifold surge in crude oil prices since the outbreak of war between the United States and Iran.
In major Indian cities, gold prices settled at around ₹163,640 per 10 grams for 24-carat, while 22-carat gold was available at ₹150,000 per 10 grams.
The rally extended to international markets, where US spot gold rose 1.15 per cent to $5,181.30 per ounce.
Although the metal has fallen roughly 3 per cent this week — pressured by fading rate-cut expectations and higher energy costs fuelling inflation concerns — the dollar’s weakening over the past week amid the Iran-US war has provided some support to prices.
Geopolitical risks remain elevated after Iran’s Foreign Minister stated on Friday: “Iran doesn’t seek any ceasefire or negotiations with the United States.”
He added, “Iran is prepared for both scenarios— if the US wants war, we will meet them on the battlefield; if Washington wants peace, we will meet them at the table.”
US President Donald Trump, in response, has insisted he will accept nothing less than “absolute surrender from Iran”.
Should the conflict drag on, continued uncertainty in global energy markets is likely to push gold and silver prices higher by a significant margin.
In India, international market turmoil, crude oil surges, rising shipping costs, import duties, and taxes are expected to further influence domestic gold and silver prices.
Also read: Iran withdraws from Winter Paralympics over safety concerns
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