Gold, silver rates today: Gold and silver rates today rose nearly 2.5% on Monday, March 2, amid escalating tensions in the Middle East, unsettled financial markets, prompting investors to seek to rush to safe-haven assets.
Spot gold rate today climbed to $5,400 per ounce during the intraday session. Meanwhile, spot silver prices also surged nearly 2%, touching an intraday high of $96.93 per ounce, during the Asian trading hours on Monday.
What's driving gold and silver prices today?
Tensions escalated over the weekend after the United States and Israel carried out strikes on Iran, prompting Tehran to retaliate with multiple waves of missile attacks across several nations. Iran’s supreme leader, Ali Khamenei, was reportedly killed on the opening day of the offensive.
Tehran’s retaliatory barrage struck targets in Israel as well as U.S. military bases and facilities in countries including Qatar, the United Arab Emirates, Kuwait and Bahrain.
Broader geopolitical strains, along with US President Donald Trump’s reshaping of global diplomatic ties, have been major drivers behind gold’s prolonged rally. The precious metal has also drawn support from strong central bank purchases and a broader shift by investors away from sovereign bonds and currencies.
Bullions extended its strong run in February, marking its seventh straight month of gains — the longest such streak since 1973 — as investors sought safe-haven assets amid ongoing geopolitical tensions and persistent economic uncertainties, according to a Bloomberg report. These factors helped underpin precious metal prices throughout the period.
Is it right time to invest in precious metals?
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, believes that as global equities and risk assets come under pressure, capital tends to shift into precious metals, which act as a hedge against uncertainty. Earlier moves have already pushed gold and silver prices higher in recent sessions, and this momentum could continue if the conflict intensifies further, he said.
Trivedi further noted that the impact may not be uniform, leading precious metals witness some profit-booking after an initial spike of 3-6%.
Meanwhile, Ponmudi R, CEO of Enrich Money, said that volatility in the bullions remains contained, but participation has picked up meaningfully near key breakout levels. Gold and silver are exhibiting constructive technical setups, supported by firm demand at higher bases.
Fawad Razaqzada, Market Analyst at City Index and Forex.com, was quoted as saying by Reuters, “There will be extra haven demand for gold, which could see prices rise to around $5,500 again, and possibly a new record high above January's peak of around $5,600.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
