Gold rate today jumps Rs 5,500, silver price Rs 10,000 as Iran war triggers risk off trade

Gold futures for May delivery rose 3.4 per cent, while silver futures gained 3.6 per cent in MCX trading on Monday, as the ongoing conflict in the Middle East drove safe-haven demand for precious metals. The US President Donald Trump has suggested the conflict could last up to four weeks, further boosting investor caution.

At 12.15 pm, gold futures were trading 3.43 per cent higher at Rs 1,67,650 per 10 grams, reaching an intraday peak of Rs 1,67,915. Silver futures rose 3.59 per cent to Rs 2,92,801 per kg, a jump of Rs 10,157, following Iran’s retaliation to US-Israel airstrikes, which heightened global risk-off sentiment.

Jateen Trivedi, VP Research Analyst for Commodity and Currency at LKP Securities, said the sharp escalation, with coordinated strikes and retaliatory actions, has increased uncertainty and reduced the likelihood of a swift diplomatic resolution. This elevated geopolitical risk is prompting investors to move into traditional safe-haven assets like gold and silver.”

He added that as global equities and other risk assets face pressure, capital often shifts to precious metals, which serve as a hedge against uncertainty.

The recent moves follow a joint US-Israel military operation targeting Iranian military and nuclear-linked sites. Iran’s Supreme Leader was reportedly killed in the strikes, further intensifying tensions. In retaliation, Iran launched missile and drone attacks on Israeli targets and US bases across multiple Gulf states. While the situation remains fluid, the stated objective of the US-Israel operation is to curb Iran’s nuclear capabilities, weaken its regional influence, and pursue regime change.

Ponmudi R, CEO of Enrich Money, said: “MCX Gold futures are trading in the Rs 1,65,000–1,70,000 range after consolidating following the sharp correction from all-time highs near Rs 1,80,000–1,81,000. Strong buying persists in the Rs 1,58,000–1,62,000 zone. A sustained move above Rs 1,65,000 could push prices toward Rs 1,70,000–1,75,000, maintaining a bullish medium-term outlook.”

Ponmudi noted that the long-term bullish trend remains intact for gold, supported by global cues and heightened geopolitical tensions.

For silver, he said prices continue their upward momentum, with short-term trends turning decisively positive. "Key support is in the Rs 2,50,000–2,70,000 range. Holding above this could trigger further gains toward Rs 3,20,000–3,30,000. Dips toward support levels may provide accumulation opportunities, though a breakdown below these zones could intensify downward pressure.”