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Why gold and silver are rising in India todayGold and silver prices in India rose on March 5 due to Middle East tensions. Gold traded at ₹1.62 lakh/10g, silver at ₹2.69 lakh/kg on MCX. Safe-haven demand cited.By Anshul  March 5, 2026, 10:27:55 AM IST (Published)2 Min ReadGold and silver prices in India rose on Thursday, March 5, as escalating geopolitical tensions in the Middle East and currency movements drove investors towards safe-haven assets.

On the Multi Commodity Exchange (MCX), gold increased 0.63% to trade at ₹1.62 lakh per 10 grams, while silver surged 1.62% to ₹2.69 lakh per kg. The rise comes amid a softer US dollar, which makes dollar-denominated bullion cheaper for buyers using other currencies.

The US–Iran conflict intensified recently after a US submarine reportedly sank an Iranian warship off Sri Lanka, and NATO air defences intercepted a missile fired towards Turkey. The escalating tensions have raised concerns over potential disruptions to oil flows through the Strait of Hormuz, a crucial global energy route.

Analysts say the current rally reflects a “flight-to-safety” trend, as investors prioritise wealth preservation amid volatile equity markets. Indian equities have fallen more than 3% this week, further supporting demand for bullion.

Hareesh V, Head of Commodity Research at Geojit Investments Limited, said, “The broad outlook for gold remains positive due to ongoing geopolitical tensions and strong fundamentals. Silver may see choppy trading, as speculative activity dominates, but overall remains mildly positive.”

Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that  the surgein gold is largely driven by safe-haven demand. “With the intensification of US-Iran hostilities and declines in domestic equity markets, investors are prioritising wealth preservation over speculative gains,” he said.

Globally, spot gold rose 0.8% to $5,176.69 per ounce, while silver climbed 1.2% to $84.43 per ounce.

NS Ramaswamy, Head of Commodity and CRM at Ventura, described gold’s movement as a “tug-of-war” between safe-haven demand and macroeconomic pressures. Rising crude oil prices, driven by potential supply disruptions, could stoke inflation and push real yields higher, which typically weigh on non-yielding assets such as gold.

At the same time, structural support remains from elevated US fiscal deficits and central bank bullion accumulation.

-With Reuters inputsContinue ReadingNote To Readersisclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.TagsgoldGold Pricesgold ratessilversilver prices