Gold prices climb nearly 1% as US-Israel-Iran tensions intensify; key factors investors should monitor

• Gold prices surge due to US-Israel-Iran tensions and safe-haven demand
• Gold prices in India reach record Rs 1.7 lakh per 10 grams
• High volatility expected due to geopolitical risks and high oil prices

Did our AI summary help?

Gold prices are trading marginally higher on March 3, amid geopolitical tensions fueled by the US-Israel and Iran conflict.

The international spot price of gold was trading 0.89 percent higher at $5,358.58 per ounce during early hours on Comex, and silver was 0.19 percent up at $89.02 per ounce.

The domestic futures price of gold closed the MCX session on Monday 2.53 percent higher at Rs 1,66,199 per 10 grams of 24-carat purity.  The Indian Bullion Jewellers Association (IBJA) pegged the standard price of gold at Rs 1,67,471 per 10 grams during their evening trade.

Meanwhile, the rupee traded stronger at 91.74 during the early Tuesday trade. Participants await a decisive move in the dollar index or fresh cues from secondary market flows to provide direction. Volatility is likely to remain high as continuing geopolitical developments keep safe-haven demand active.

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?

Escalating tensions between the US, Israel and Iran have seen investors return to gold as a traditional safe-haven asset, driving prices up sharply in global and Indian gold markets. Increased geopolitical risk, fears of supply disruptions in the Strait of Hormuz, rising oil prices, and a weakening rupee have created a supportive environment for gold in India, where prices have already surged toward record highs, reaching near Rs 1.7 lakh per 10 grams.

"Safe-haven buying increases in these conflict situations as investors move away from equities and risk assets into stores of value, which can be seen clearly as the markets have reopened. If the conflict is prolonged or escalates into a broader regional conflict, gold could test new highs in India, especially if crude oil remains elevated and the rupee remains under pressure, which increases import costs for gold. However, any signs of de-escalation or a stronger USD could cap prices in the short-term," said Ross Maxwell, Global Strategy Operations Lead, VT Markets.

The Augmont Bullion report, published on March 3, noted that gold has decisively surged above the key resistance level of $5,250 (Rs 1,60,000) and resumes its upward trajectory. It is now targeting $5,450 ( Rs 1,70,000), followed by $5,600 (Rs 1,80,000) in the near term. The breakout signals renewed bullish momentum, with strong technical support now placed at $5,200 (Rs 1,58,000). "As long as prices sustain above this zone, dips are likely to attract fresh buying interest."

Read more: Check live prices of gold and silver on March 3.