Gold and silver reacted somewhat lightly to news of the US-Israeli coordinated military action against Iran over the weekend. The much-anticipated big gap did not happen on Monday. Gold opened just 1.7% higher, before rising 2.5% to trade around $5408 during the day. Silver trades around $95.44, up by 1.73% on Monday. Gold is up by 25% year-to-date, while silver is up over 27% YTD.
Gold price in India post the break-out of the US-Israel war on Iran has jumped 5% to Rs 1,67,059, while silver has gained 9% to trade around Rs 2,90,308, on Monday.
Comex gold futures trade around $5,428, up 3.44%, but are likely to face resistance around $5,500, according to many metal industry experts.
In the Indian markets, MCX gold futures for 02 APR 2026 contracts trade at around Rs 1,68,992, up by 4.2%, for 10 gram 24 carat. Silver MCX 05 MAY 2026 contracts trade 5% higher at Rs 2,97,057 per Kg.
Gold prices have surged since 2022 primarily due to geopolitical tensions and the effects of Trump’s tariffs on global trade, prompting increased purchases by central banks and a shift in investor preference away from sovereign bonds and currencies.
Meanwhile, gold and silver ETFs ended the day in green in the Indian stock market. Silver ETFs gained up to 11%, while gold ETF prices increased up to 6% on Monday. Angel One Silver ETF with a jump of 10.30% was the highest gainer with 1,08,70,367 units traded. The highest value of trade was in Nippon India Silver ETF of Rs 4,124.29 crore, closing 8.64% higher.
“With geopolitical instability rising, global debt levels elevated, and policymakers navigating an increasingly complex macro landscape, gold and silver remain structurally supported. Market participants are not exiting positions; rather, they are using price dips as opportunities to accumulate,” says Dr. Renisha Chainani, Head – Research at Augmont.
If the Middle East tensions escalate, gold and silver are likely to see fresh buying, pushing prices higher. But, investors need to keep an eye on the US Dollar Index, which has gained strength over the last 5 days.
After dropping over 12% in 2025, the US Dollar index has started showing strength this year. In 2026, the US Dollar index is up 0.06%, after rising 0.76% in the last 30 days. A strong dollar keeps the gold prices in check.
However, two other factors are supporting gold prices. The US Producer Price Index (PPI), released on Friday, revives concerns about sticky inflation. Also, a slowing economic growth creates a scenario where the Federal Reserve cannot cut interest rates without reigniting inflation or hold without slowing the economy further.
The Sensex closed down 1.29% (1048.34 points) at 80,238.85 on Monday, while the Nifty closed at 24,865.70, down 312.95 points (-1.24%).