Monday, March 2 — Gold prices on the Multi Commodity Exchange (MCX) surged sharply in early trade as investors rushed toward safe-haven assets following escalating geopolitical tensions in the Middle East.
As of 09:02 AM, MCX Gold Futures (continuous contract) were trading at Rs 1,67,176 per 10 grams, up Rs 5,072 or 3.13%.
The rally comes after major U.S.–Israel strikes on Iran over the weekend and subsequent retaliatory developments, raising fears of prolonged instability in the region. Fresh military exchanges have heightened concerns about broader economic fallout and potential disruptions to global trade routes.
Gold, traditionally considered a hedge against geopolitical uncertainty and inflation risks, witnessed strong buying interest as global markets turned cautious. Rising crude oil prices and concerns surrounding the Strait of Hormuz have added to inflationary fears, further supporting bullion demand.
The precious metal has already been on a strong upward trajectory this year, supported by central bank buying, ETF inflows and expectations of monetary policy easing in key economies. The latest geopolitical developments have intensified the risk-off sentiment, pushing gold higher.
Market participants are now closely tracking further developments in the Middle East along with upcoming U.S. economic data, including labor market indicators, which could influence global risk appetite and bullion prices.
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