Gold price surges 3% to Rs 1.67 lakh on MCX amid Israel-Iran conflict; what's the near-term outlook?

• Gold prices rise amid US-Israel and Iran conflict escalation
• Gold opened 3.15 percent higher at Rs 1,67,217 per 10 grams
• Analysts see gold possibly reaching Rs 1.70 lakh per 10 grams

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Gold prices are trading marginally higher on March 2, amid geopolitical tensions fueled by the US-Israel and Iran conflict.

The domestic futures price of gold opened the MCX session up by nearly 3.15 percent at Rs 1,67,217 per 10 grams of 24-carat purity.

The spot price of gold was trading 1.86 percent higher at $5,345.50 per ounce during early hours on Comex, and silver was 0.81 percent up at $94.045 per ounce.

Volatility is likely to remain high as continuing geopolitical developments keep safe-haven demand active.

Meanwhile, the rupee traded stronger at 91.24 against the US dollar in early trade on Monday.

City-wise gold prices in India today

Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Why are gold prices rising?

US and Israeli forces carried out joint strikes on Iran on Friday, triggering retaliatory missile and drone attacks on US bases, which eliminated Iran’s Supreme Leader along with top Iranian leaders, which has led to wider escalation.

Analysts say heightened tensions could push gold to Rs 1.70 lakh per 10 grams and silver to Rs 3 lakh per kg in the near term. Crude oil prices have also surged amid concerns about supply disruption in the Strait of Hormuz, reinforcing risk-off sentiment and boosting bullion demand.

"If there are diplomatic developments or indications of de-escalation, precious metals could see profit-taking after an initial spike of 3-6 percent," said Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, an online brokerage firm.

Check live prices of gold and silver: Live Post of Gold, Silver Rate Today (Mar. 2)