Gold zooms as safe-haven asset scores in uncertain times

Kolkata: Gold and silver rallied on Monday, reflecting strong demand for safe-haven assets amid smouldering geopolitical tensions in West Asia. Gold surged by ₹7,000 per 10 gm to ₹1.66 lakh and silver jumped by ₹20,000 per kg to ₹2.86 lakh.

"If the West Asian conflict continues, the risk premium for investors would increase, pushing gold prices in India to new records," said Aksha Kamboj, vice president at India Bullion & Jewellers Association (IBJA). "Gold has traditionally been a safe-haven asset for investors, and the sustained demand for gold could boost prices to new highs."

"However, the extent of the rally (in precious metals) would depend on the outcome of the conflict, the monetary policy stance, and the currency value," said Kamboj, adding that "while prices could surge in the short term, investors should keep a check on the overall scenario."


Rising crude oil prices since the joint Israeli and US military strikes on Iran on February 28 and the latter's retaliation against Gulf nations has emerged as a significant worry for India with the country heavily reliant on oil imports especially from the Middle East.

Gold prices have risen 24% since January and silver 30%, adding to a 70% and 125% surge respectively in calendar year 2025.

Despite the prevailing higher prices, market participants aren't exiting positions in both metals; rather, they are using price dips as opportunities to accumulate, said Renisha Chainani, head of research at Augmont Gold.