Gold and Silver Prices Surge Amid US-Iran Tensions

Gold and silver prices have seen significant gains due to rising tensions between the US and Iran, coupled with a slight decline in the US dollar. As geopolitical uncertainties persist, the demand for these precious metals has increased. The Securities and Exchange Board of India has also revised mutual fund frameworks for valuing physical gold and silver, aiming for better market alignment and transparency. Analysts suggest that while gold is stabilizing within a certain range, the overall upward trend remains intact. This article delves into the current market dynamics and future projections for gold and silver prices.

By Narendra Chaudhary Feb 27, 2026, 14:07 IST

Market Overview

On February 27, in New Delhi, gold and silver prices experienced notable increases, driven by escalating tensions between the US and Iran, alongside a slight dip in the US dollar.

As of around 12:30 AM, MCX gold futures for April rose by 0.43% to reach Rs 1,60,399 per 10 grams. Concurrently, MCX silver futures for March surged by 3.05%, hitting Rs 2,67,600 per kg.

The ongoing nuclear discussions between the US and Iran have been prolonged without any significant advancements, maintaining high geopolitical tensions. The US has increased its troop presence, leading to mutual warnings between the two nations. Additionally, fresh sanctions imposed by Washington on Iran concerning oil and weapon exports have heightened the demand for safe-haven assets like gold and silver.

The dollar index saw a minor decline of 0.04%, settling at 97.76, which made dollar-denominated bullion more affordable for international buyers. This slight decrease followed a period of significant gains that had pushed the dollar to a four-week peak, which limited the upward movement of gold prices.

Moreover, expectations for immediate interest rate reductions in the US have diminished, reflecting signs of strength in the US economy.

In a related development, the Securities and Exchange Board of India (SEBI) has revised the framework for mutual funds regarding the valuation of physical gold and silver in their exchange-traded funds (ETFs).

This adjustment aims to align pricing with local market conditions, enhance transparency, and standardize valuation practices among various fund houses. The new regulations are set to take effect on April 1, 2026.

Currently, MCX Gold futures are stabilizing within the Rs 1,55,000 to Rs 1,65,000 range after a correction from record highs near Rs 1,80,000 to Rs 1,81,000. Analysts suggest that the overall upward trend for gold remains intact, with the current sideways movement indicating a healthy pause rather than a reversal.

For MCX Silver, key structural support is identified at the Rs 2,25,000 to Rs 2,35,000 range, and maintaining levels above this could potentially lead to prices reaching Rs 3,00,000 to Rs 3,25,000 in the medium term.