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US-Iran War: Silver prices moved sharply on Monday as geopolitical tensions escalated after the United States and Israel carried out extensive military strikes on Iran, reportedly killing Supreme Leader Ayatollah Ali Khamenei. The development triggered fresh uncertainty across global financial markets and drove volatility in commodities.

The conflict intensified over the weekend after coordinated strikes by the US and Israel targeted multiple locations in Iran. Tehran responded with missile attacks aimed at Israel as well as US military installations and strategic sites in Qatar, the United Arab Emirates, Kuwait and Bahrain, widening fears of a broader regional confrontation.

On MCX, Silver price added 3.5% to ₹2,84,490 per kg while MCX gold rate rallied 3.5% to ₹1,67,915 per 10 grams.

In the international markets, spot silver slipped 1.2% to $92.72 per ounce, even after logging a monthly gain in February. The metal had initially drawn safe-haven interest but later pared gains amid a stronger US dollar.

Gold, however, extended its rally. Spot gold climbed 1% to $5,329.39 per ounce as of 0201 GMT, after touching its highest level in more than four weeks. During early trade, bullion surged as much as 2 percent. US gold futures gained 1.8 percent to $5,342.80 per ounce, reflecting robust demand for safety amid rising geopolitical uncertainty.

Other precious metals witnessed mixed moves. Spot platinum declined nearly 1% to $2,343.50 per ounce, while palladium advanced 0.5% to $1,795.11 per ounce.

Rising geopolitical tensions in the Middle East have once again pushed precious metals into the spotlight. While gold has traditionally led the safe-haven rally, silver is now emerging as an equally compelling — and more volatile — play in the current risk environment.

Harshal Dasani, Business Head at INVasset PMS, believes silver’s reaction has been sharper and structurally different from gold’s.

“Silver, however, is behaving differently — and more aggressively. Unlike gold, silver carries both safe-haven and industrial demand characteristics. In times of uncertainty, it benefits from risk hedging, but it also remains tied to structural themes like electrification, solar expansion, and industrial recovery.”

He indicated that silver’s dual identity — part monetary metal, part industrial commodity — gives it greater upside torque during stress cycles. According to him, if geopolitical tensions remain elevated and the dollar does not surge sharply, silver could potentially outperform gold on a relative basis. In his view, metals are not merely reacting to headlines but actively repricing global risk.

Gold, meanwhile, continues to attract steady institutional and defensive flows. Dasani noted that the widening conflict between Israel and Iran has strengthened the underlying bid for precious metals, especially gold.

“The escalation between Israel and Iran has reinforced the structural bid in precious metals. Whenever geopolitical fault lines widen, gold becomes the first port of safety — and that is exactly what we are witnessing.”

He suggested that firm crude prices and weakening global risk appetite are prompting investors to rotate toward hard assets. For India, higher oil prices could raise inflation risks, indirectly enhancing gold’s hedge appeal. He also pointed out that strong central bank accumulation over the past year has already created a solid demand base, and fresh geopolitical stress is adding another layer of structural support.

According to Dasani, gold is increasingly being treated not merely as a defensive allocation but as a strategic reserve asset in an increasingly fragmented global order.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.Pranati Deva is a financial journalist with over a decade of newsroom experience, currently serving as Senior Sub Editor at LiveMint. She brings sharp...

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