Just a day before the start of Iran war on 27 February 2026, gold in India was Rs 1.59 lakh per 10 grams. But by March 21, i.e. the 22nd day of the war, its price fell by about 8% to Rs 1.47 lakh. In the international market too, gold fell by about 14% to $ 4,488 an ounce. This trend is a little different, because usually the price of gold increases during times of war.
How does gold usually move in war?
Gold has always been considered a safe investment. Whenever there is war or uncertainty, people invest money in gold, due to which the prices increase. For example, during the Gulf War of 1990 and Iraq War of 2003, there was a good rise in gold prices. Even in Russia-Ukraine war (2022), gold initially rose, but later fell.
Why did gold fall this time?
This time there are four big reasons behind the fall of gold.
- strong dollar- Gold becomes expensive due to strengthening of dollar, due to which its demand decreases. This time also the dollar index increased and investors started investing money in dollars.
- Interest bearing investments more attractive- The fear of inflation increased due to increase in crude oil prices, but central banks did not increase interest rates. This strengthened the dollar and reduced investment in gold.
- Profit booking- By 2025, gold had risen by about 74%. In such a situation, investors started withdrawing profits, which put pressure on prices.
- Demand weak in India- Due to high prices, customers reduced purchases. Jewelery sales in Mumbai are reported to have fallen by 75%. Also, due to more stock than before, jewelers also reduced new purchases.
What will happen next, will it fall or rise?
Experts’ opinion is divided. Some believe that gold can reach $ 6,000 per ounce by the end of 2026. If this happens and the rupee remains weak, then gold in India can reach Rs 2 lakh per 10 grams. But all this will largely depend on the Iran war, oil prices and the strength of the dollar.
What is the condition of silver?
There have been fluctuations in silver also. It increased from Rs 86,000 per kg in the beginning of 2025 to Rs 3.39 lakh in 2026, but has now fallen to around Rs 2.32 lakh. However, industrial demand is strong and supply is limited, so it is expected to rise in the long term. If you are an investor, there is no need to panic. Experts say that instead of investing a huge amount at once, it would be better to invest gradually. Overall, there will be ups and downs in the market right now, but in the long term there are possibilities for both gold and silver.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.