Gold Prices Trade Higher Amid Geopolitical Tensions

On March 2, gold prices are trading marginally higher due to ongoing geopolitical tensions between the US, Israel, and Iran. The domestic futures price of gold on the MCX opened the session up by 3.15% at Rs 1,67,217 per 10 grams of 24-carat purity.

Market Overview

The spot price of gold is trading 1.86% higher at $5,345.50 per ounce during early hours on Comex, while silver is 0.81% up at $94.045 per ounce. The volatility in the market is expected to remain high due to ongoing geopolitical developments, which are driving safe-haven demand.

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Currency Movement

The Indian rupee traded stronger at 91.24 against the US dollar in early trade on Monday.

City-wise Gold Prices

Gold rates across India's major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweler margins, and logistics costs.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Analysis

Analysts predict that heightened tensions could push gold to Rs 1.70 lakh per 10 grams and silver to Rs 3 lakh per kg in the near term. Crude oil prices have also surged amid concerns about supply disruption in the Strait of Hormuz, reinforcing risk-off sentiment and boosting bullion demand.

Near-term Outlook

If there are diplomatic developments or indications of de-escalation, precious metals could see profit-taking after an initial spike of 3-6%.