Mumbai, March 3: Amid escalating tensions in the Middle East and a surge in energy prices, gold prices in global markets have risen for the fifth consecutive session on Tuesday.
On Monday, gold for April delivery on the MCX increased by 2.53%, reaching ₹1,66,199 per 10 grams. In contrast, silver for May delivery saw a decline of 0.90%, settling at ₹2,80,090 per kilogram.
Due to the Holi festival, trading on India’s Multi Commodity Exchange will be suspended during the first session on Tuesday, resuming at 5 PM.
As tensions rise in West Asia, investors are flocking to safer investment options. Concerns about increasing inflation in the United States and the Federal Reserve’s potential to maintain interest rates for an extended period have also intensified.
Spot gold rose by 0.8%, reaching $5,360 per ounce, while U.S. gold futures experienced nearly a 1% increase. Spot silver climbed approximately 1.9%, hitting $91.11 per ounce.
The dollar index increased by 0.19% to 98.57, making dollar-denominated gold more expensive for foreign buyers and slightly curbing further price increases.
U.S. President Donald Trump stated that military action against Iran will continue as long as necessary. Reports indicate that Tehran has targeted oil and gas infrastructure in Saudi Arabia and warned of damage to vessels in the strategic Strait of Hormuz. Meanwhile, Israel has announced a “new wave of attacks” targeting Iranian command centers.
Concerns over potential disruptions to oil and gas supplies due to Iranian counterattacks have led to a spike in crude oil prices and heightened inflation worries.
U.S. crude oil futures rose by 1.4%, reaching $72.23 per barrel, while Brent crude traded up by 1.87% at $79.2 per barrel in early trading.
Investors are now closely monitoring U.S. manufacturing and non-manufacturing PMIs, ADP non-farm employment changes, and unemployment data to gauge the Federal Reserve’s future policy direction.
So far in 2026, gold prices have surged by approximately 25%. Last year, gold prices rose by 64%, driven by strong purchases from central banks, increased investment in exchange-traded funds, and concerns over the Federal Reserve’s independence.
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