Gold and silver prices skyrocket amid Israel-Iran tensions, check the current rates here

Mumbai (The Uttam Hindu) : Rising tensions in the Middle East and a joint US-Israeli military operation against Iran boosted safe-haven demand, leading to a significant surge in precious metals on Monday. Gold and silver prices rose more than 3 percent.

On MCX, April gold futures rose more than 3 percent to an intraday high of ₹1,67,915 per 10 grams. March silver futures also rose more than 3 percent to ₹2,85,978 per kg, also hitting an intraday high.

However, at the time of writing this news (around 10.46 am), gold with April 2 expiry on MCX was trading at Rs 1,66,716 per 10 grams, up by Rs 4,612 or 2.85 per cent, while silver with March 5 expiry was trading at Rs 2,82,309 per kg, up by Rs 7,311 or 2.66 per cent.

Tehran launched retaliatory missile strikes on Israeli territory and US bases in the Gulf in response to Israeli attacks targeting command centers and air defenses, further fueling uncertainty.

Tensions in the region escalated following the killing of Iran's Supreme Leader Ayatollah Ali Khamenei in a joint US and Israeli strike on Sunday. Markets turned risk-averse on fears of a wider regional conflict, and concerns about a disruption to crude oil supplies through the Strait of Hormuz fueled a surge in safe-haven demand.

"Gold extended last week's gains amid concerns about the US-Iran war. Uncertainty surrounding US President Donald Trump's tariff policy also increased global economic risks," said Manav Modi, commodity analyst at Motilal Oswal Financial Services Ltd.

The dollar index rose 0.24 percent to 97.85, making dollar-denominated gold more expensive for investors buying in foreign currencies and capping the yellow metal's gains. Crude oil prices also jumped more than 7 percent as markets feared a US-Iran war could lead to major regional supply disruptions.

Investors are now eyeing crucial manufacturing PMI data from major economies, while market direction this week will depend on US labor market data. The recent rally comes after gold prices rose 64 percent in 2025. This surge has been driven by strong buying by central banks, heavy investments in exchange-based funds, and expectations of easing monetary policy in the US. JP Morgan estimates that gold could reach $6,300 per ounce by the end of 2026, while Bank of America expects the price to reach $6,000 per ounce.