Why Is Gold Price Rising Today?

Mumbai, February 28: The gold price experienced a sharp, vertical rally on Saturday, February 28, as the "fear index" in global markets surged following direct military confrontations between the US, Israel, and Iran. With regional airspace closed and maritime security in the Persian Gulf under threat, investors have abandoned riskier assets in a massive "flight to safety." Domestic gold rates on the MCX and in major Indian cities have hit record highs, with market analysts now projecting a bullish path toward the USD 6,000 per ounce milestone in the international market.

The sudden spike in gold price is a direct response to "Operation Epic Fury", a joint US-Israeli strike on Iranian infrastructure, and Tehran’s subsequent retaliatory missile launches. Historically, gold serves as the ultimate "war currency," maintaining its value when fiat currencies and equities fluctuate during geopolitical instability. In India, retail gold prices in cities like Delhi and Mumbai have jumped by thousands of rupees per 10 grams in a single trading session, reflecting a global scramble for the yellow metal. Iran-Israel War: Air India, IndiGo, SpiceJet Suspend West Asia Flights, Issue Travel Advisory Amid Escalating Airspace Curbs.

Why Is Gold Price Rising Today?

The primary driver for today's price hike is geopolitical risk premium. When a conflict involves a major oil-producing region and a global superpower like the US, the uncertainty regarding global trade and energy supply chains becomes extreme. Gold is the only asset that carries no "counterparty risk," making it the preferred choice for central banks and institutional investors during a potential wartime economy.

Additionally, the threat of a prolonged conflict has triggered fears of supply-chain inflation. If the Strait of Hormuz is disrupted, energy costs will soar, devaluing paper currencies. Investors buy gold today to hedge against the future loss of purchasing power, effectively using the metal as a shield against the economic fallout of the escalating Middle East crisis. Gold Rate Today, February 28, 2026: Check 22K and 24K Gold Prices in Delhi, Mumbai, Chennai and Other Cities.

Market Outlook: The Road to USD 6,000

Financial experts and commodity strategists are increasingly confident that gold has entered a new "super-cycle." While the metal was already trending upward due to central bank buying in early 2026, the current military escalation has accelerated the timeline for major price breakthroughs.

If the conflict expands to include more regional players or impacts global oil transit, analysts believe the psychological barrier of $6,000 per ounce is no longer a distant possibility. Many investors are currently being advised to "buy the dips," as any temporary price correction is seen as an entry point before the next leg of the rally.

City-Wise Gold Rates and Retail Impact

Across India, the impact on the physical bullion market has been immediate.

• Mumbai & Pune: High demand for 24K gold bars as a wealth preservation tool.
• Delhi & NCR: Retailers report a surge in inquiries for gold coins and biscuits despite the record-high entry prices.
• South India: In hubs like Chennai and Bengaluru, the wedding season demand is now competing with "panic buying" from investors looking to secure their savings.

Gold has a long-standing history of outperforming other assets during periods of military escalation. During the 1979 Iranian Revolution and the subsequent oil crisis, gold prices more than doubled in less than a year. Similar patterns were observed during the onset of regional conflicts in 2024. In 2026, with the added complexity of AI-driven high-frequency trading and 24/7 news cycles, the reaction in the gold market has become faster and more pronounced than in previous decades.

(The above story first appeared on LatestLY on Feb 28, 2026 05:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).