Bullion prices soar amid Middle East tensions: gold at ₹1.70 lakh, silver above ₹3.15 lakh

Precious metals remained elevated in the national capital on Tuesday after witnessing a sharp rally a day earlier, as escalating hostilities in the Middle East continued to drive investors towards safe-haven assets.

According to the All India Sarafa Association , silver had surged nearly 12 per cent on Monday to Rs 3,00,000 per kilogram (inclusive of taxes). In Tuesday’s trade, the white metal was ruling higher at around Rs 3,15,000–3,20,000 per kg in the physical market.

Gold of 99.9 per cent purity, which had jumped Rs 8,100 to Rs 1,72,800 per 10 grams in the previous session, was quoted at around Rs 1,70,660 per 10 grams on Tuesday. Meanwhile, 22-carat gold was trading at approximately Rs 1,56,450 per 10 grams.

The surge in bullion prices follows coordinated military strikes by the United States and Israel on Iran, triggering retaliatory action and heightening fears of a wider regional conflict. The geopolitical uncertainty has rattled global financial markets, prompting a broad risk-off sentiment and increased allocation towards defensive assets such as gold and silver.

In the international market, spot gold hovered near the USD 5,400 per ounce mark, while silver continued to trade firm amid concerns over disruptions to energy infrastructure and key global trade routes in West Asia.

Analysts said the trajectory of bullion prices will also depend on upcoming US macroeconomic data, including Manufacturing and Services Purchasing Managers’ Index (PMI) readings, ADP non-farm employment data and unemployment figures. These indicators are closely tracked for signals on economic momentum and could influence expectations regarding the US Federal Reserve’s monetary policy stance.

Market participants expect volatility to persist in the near term as geopolitical developments and global economic indicators shape investor sentiment.