Silver, gold futures surge 4% as U.S.-Israel strikes on Iran trigger rush

Precious metal prices jumped 4% in futures trade on Monday, with silver surging to ₹2.93 lakh per kilogram and gold climbing to near ₹1.68 lakh per 10 grams, tracking strong demand in the international markets.

Analysts said investors rushed to safe-haven assets after the U.S. and Israel launched coordinated military strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei and triggering retaliatory attacks from Tehran across the Middle East.

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On the Multi Commodity Exchange, silver futures for May delivery soared ₹10,508, or 3.72%, to ₹2,93,152 per kg, while gold for the April contract jumped ₹5,811, or 3.6%, to ₹1,67,915 per 10 grams.

Rally in bullion futures accelerated in early morning trade, with prices jumping over 3% after the U.S. and Israel launched major strikes on Iran that killed Khamenei, marking an unprecedented escalation in the region, Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.

Globally, Comex silver futures for May delivery gained $4, or 4.3%, to $97.30 per ounce, while gold rose $161.8, or 3.08%, to $5,409.7 per ounce.

“Gold climbed above $5,400 per ounce, reaching an over one-month high as safe-haven demand intensified following joint strikes by the U.S. and Israel on Iran over the weekend,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

He added that the attacks escalated regional instability and disrupted maritime traffic in the oil-rich Gulf.

Meanwhile, Iran responded with missile strikes targeting U.S. assets across neighbouring countries, including the UAE, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria.

Mr. Trivedi noted that gold logged its seventh straight monthly gain in February, the longest streak since 1973, driven by rising geopolitical tensions, strong central bank purchases, and investors moving away from sovereign bonds and currencies.

Mr. Modi of Motilal Oswal Financial Services said investors will now monitor key macroeconomic data, including manufacturing PMI releases from major economies later in the day, while the broader direction this week will hinge on U.S. labour market data for cues on growth resilience and Federal Reserve policy expectations.