Will Gold & Silver Prices Go Up In India Over Israel-Iran War?

Precious metals markets around the world are once again in the spotlight after Israel and the US carried out a coordinated attack on Iran on Saturday which could spur increased demand for traditional safe haven assets such as gold and silver.

Israel carried out a rare daylight strike on Tehran Saturday, sending plumes of smoke over Iran's capital. Witnesses in Tehran reported hearing a loud blast, and Iranian state television acknowledged the explosion but offered no explanation.

Such developments usually sends investors scrambling for protective positions, fuelling gains in bullion markets.

On the Multi Commodity Exchange of India (MCX) on Friday, gold futures for April delivery traded around ₹1,60,399 per 10 grams, while silver futures for March delivery surged to approximately ₹2,67,600 per kilogram.

The latest data from India's major commodity platforms indicates spot prices aligned with futures trends: gold is hovering near the ₹1.60 lakh/10 g level and silver is close to the ₹2.68 lakh/kg mark, levels not commonly seen outside periods of heightened market stress.

Why Prices Are Rising

Analysts point to multiple drivers behind the rally:

Geopolitical tensions in the Middle East, particularly renewed pressure between the US, Israel and Iranm have historically pushed investors toward safe haven assets. Gold and silver tend to outshine riskier equities when uncertainty spikes globally.

The US dollar's movements also play a role. A softer dollar makes dollar, priced bullion cheaper for holders of other currencies, bolstering demand.

Central bank purchases and ETF demand have been robust, as global financial institutions stockpile precious metals against inflation and instability. India's Finance Minister recently highlighted rising central bank demand as a factor underpinning prices.

Silver, in particular, has drawn attention for its dual appeal as both a safe-haven play and an industrial metal, with usage in technology and green energy sectors adding structural support to its price.

Will Prices Continue to Rise?

Market strategists are watching key factors that could determine the next leg of the rally:

If military escalation expands beyond strikes and threatens broader conflict or disruption to Middle Eastern energy output, precious metals could see another sharp leg higher. Historical patterns show gold and silver often rally on geopolitical risk.

Also, progress in diplomacy, de-escalation or a stronger US dollar could temper bullion gains and lead to short-term consolidations or pullbacks. Analysts note that metals are notorious for volatility in such environments and recommend cautious positioning.

Current Price Snapshot in India (as of Feb 27, 2026)

Gold (MCX April futures): ₹1,60,399 per 10 grams

Silver (MCX March futures): ₹2,67,600 per kg

In metropolitan retail terms, these futures rates translate to local pricing for consumers and jewellers that is broadly elevated compared with recent months, reflecting continued risk premium priced into bullion markets.

Bottom Line:

If geopolitical tensions between the US, Israel and Iran worsen further, gold and silver are likely to stay elevated and may climb further as investors seek safety and hedge against uncertainty. However, prices remain subject to rapid swings depending on diplomatic or economic developments globally.