The gold and silver markets experienced price increases on Monday because people worldwide were searching for safe investments after Middle Eastern tensions escalated. The United States and Israel and Iran reached critical military milestones, which caused investors to start favoring safe-haven assets.
The Multi Commodity Exchange of India shows that
The April 2026 gold futures contract increased by ₹5,811 (3.5%) to reach ₹1,67,915 per 10 grams.
The March 5 2026 silver futures contract increased by ₹9,492 (3.5%) to reach ₹2,84,490 per kg.
The market experienced significant increases because investors faced increasing uncertainty about potential economic impacts.
International Gold Prices Climb
Global gold prices increased because geopolitical conflicts created higher international tensions.
Spot gold experienced a session increase of 2% which brought its price to $5,329 per ounce.
U. S. gold futures experienced a price increase of 1.8% which brought their value to $5,342.80 per ounce.
The price increase reached its peak after four weeks of continuous rising international prices.
Gold and Silver ETFs Show Strong Performance
Exchange-traded funds (ETFs) that follow precious metals established substantial profits after investors moved their assets to more secure investment choices.
The Angel One Silver ETF experienced an 18% increase.
The Tata Silver ETF experienced a 13% increase.
The Zerodha Silver ETF reached an approximate 10% increase.
The other silver and gold ETFs showed price increases between 8% and 9%.
The strong inflows highlight growing defensive positioning by investors amid market volatility.
Outlook: Prices Likely to Stay Supported
Market experts believe gold and silver will remain well supported as long as geopolitical tensions persist. The international oil risk premium has increased because of the conflict, which creates inflation worries for countries like India that import oil.
The analysts state that precious metals will maintain their current “conflict premium” until these political and diplomatic and oil route conditions become clear.
The Broader Markets Experience Market Effects
Rising oil prices could widen India’s current account deficit and complicate inflation management, potentially delaying interest rate cuts by the Reserve Bank of India. Meanwhile, equity markets have already turned volatile, with foreign investor outflows and pressure on oil-sensitive sectors.
Safe-Haven Demand Driving the Trend
With global uncertainty still high, investors are likely to continue favouring defensive assets such as gold and silver. Market direction in the coming weeks will largely depend on how long the geopolitical tensions last and whether energy supply risks escalate further.
