Geopolitical Tensions Propel Gold and Silver Prices Higher

The recent military actions by the US and Israel against Iran have escalated geopolitical tensions, leading to a surge in gold and silver prices. Analysts predict continued bullish momentum for these precious metals as investors seek safe-haven assets amid uncertainty. With gold futures climbing and silver prices showing strong upward trends, market experts are closely monitoring the situation. Predictions suggest that if tensions persist, gold could reach new heights, making it a focal point for investors looking to hedge against market volatility. As markets prepare to reopen, significant price movements are expected, particularly in Dubai, where gold rates are set to rise.

By Narendra Chaudhary Mar 1, 2026, 16:07 IST

Market Reactions to US-Israel Actions

The recent coordinated military action by the United States and Israel against Iran has significantly increased geopolitical tensions, causing unease among investors and likely leading to a rise in commodity prices. On Friday, US gold futures for April delivery rose by 1 percent, closing at $5,267.20 per troy ounce, which represents an 11 percent increase for February. This marks the eighth consecutive month of price increases in the gold futures market. In addition, silver futures for May surged by 6.5 percent, finishing at $93.64 per troy ounce, with monthly gains surpassing 18 percent, continuing a streak of ten months of growth. On the Multi Commodity Exchange (MCX), the April gold contract settled at Rs 1,62,104 per 10 grams, reflecting a 1.50 percent rise, while the May silver contract closed at Rs 2,82,644 per kilogram, up 5.48 percent on Friday.

Safe-Haven Assets in Demand

Market analysts note that significant conflicts typically lead to increased investments in safe-haven assets. Hareesh V, Head of Commodity Research at Geojit Investments, stated that heightened volatility and risk aversion are likely to maintain a positive sentiment towards gold in the near future. Jigar Trivedi, a Senior Research Analyst at IndusInd Securities, mentioned that COMEX gold could see further increases due to escalating tensions in the Middle East, predicting a potential rise to $5,500 per troy ounce if the US-Israel-led operations against Iran intensify. Similarly, he anticipates that COMEX silver may also experience upward pressure, with $100 per troy ounce being the next target for the week.

Future Projections for Precious Metals

Harshal Dasani, Business Head at INVasset PMS, emphasized that the current rally is not solely driven by conflict. He pointed out that strong central bank purchases, gradually decreasing real rates, and a global shift away from the dollar are contributing factors. He suggested that if geopolitical tensions coincide with monetary easing and sustained inflows into ETFs, gold prices could potentially reach $6,000 over the next 12 to 18 months.

Anuj Gupta, a SEBI-registered market expert, noted that if COMEX silver surpasses $95 per troy ounce, it could return to $100 per ounce, with Indian silver prices possibly hitting Rs 3,00,000 per kg. For gold, he indicated that breaking through current resistance levels could see Indian gold prices rise to between Rs 1,68,000 and Rs 1,70,000 per 10 grams. The duration of the US-Iran conflict will play a crucial role in determining these prices, with prolonged tensions potentially pushing gold rates in India towards their historical peak of Rs 1,80,000 per 10 grams.

Gold Prices in Dubai

In Dubai, gold prices are anticipated to increase by up to five percent when markets reopen on Monday, driven by heightened demand for safe-haven assets amid rising geopolitical tensions. Rania Gule, a senior market analyst for Mena at xs.com, explained that in such circumstances, gold often becomes a strategic hedging tool rather than a speculative investment. She predicted an immediate upward movement in gold prices at market opening, potentially resulting in a price gap and gains between 2 and 3 percent, primarily due to institutional hedging before retail participation. This trend reflects a focus on capital preservation over short-term profit-seeking.

In the UAE, the price of 24K gold concluded the week at Dh636.0 per gram, while 22K was priced at Dh589.0 per gram, 21K at Dh564.75, 18K at Dh484.0, and 14K at Dh377.5 per gram.