Gold Prices Soar Beyond $5,300 as US-Iran Strikes Boost Domestic Rates
Gold prices reached unprecedented levels on February 28, 2026, as escalating geopolitical tensions in the Middle East affected global and domestic markets. The surge was predominantly driven by US and Israeli military actions against Iranian targets, which triggered a wave of safe-haven buying.
Gold Prices Surge Past $5,300
On this day, international spot gold prices exceeded $5,300 per ounce, peaking at an intraday high of $5,299. This sharp increase represents a significant one-day rise, with prices climbing approximately 1.75% to settle around $5,278.05 per ounce.
Key Statistics
- Spot Gold Price: $5,278.05 per ounce
- Intraday High: $5,299.00
- Daily Change: +1.75%
- Monthly Trend: -2.6% (correction from January peak)
- Annual Change: +84% since February 2025
Drivers of Price Increase
Several factors contributed to the significant rise in gold prices:
- Geopolitical Escalation: Military actions related to Iran triggered strong demand for gold as a safe haven.
- Trade Protectionism: New US tariff policies added to global market instability.
- Inflation Concerns: Recent inflation data bolstered gold’s status as an inflation hedge.
- Market Rotation: Investors shifted focus from AI stocks to safer, long-term investments.
Domestic Gold Prices in India
In line with global trends, Indian gold prices rose significantly, climbing for a second consecutive day. The domestic market saw an increase of ₹316 per gram across all purities, resulting in:
| Purity | Price per 1 Gram (INR) | Price per 10 Grams (INR) | Daily Change (INR) |
|---|---|---|---|
| 24K (Pure Gold) | ₹16,473 | ₹1,64,730 | +₹316 |
| 22K (Jewellery Gold) | ₹15,100 | ₹1,51,000 | +₹290 |
| 18K Gold | ₹12,355 | ₹1,23,550 | +₹237 |
City-Wise Pricing Variations
Gold prices slightly vary across different cities due to local taxation and transport costs. Here are notable rates for selected cities on February 28, 2026:
| City | 24K (10g) | 22K (10g) | 18K (10g) |
|---|---|---|---|
| Chennai | ₹1,69,640 | ₹1,55,500 | ₹1,27,250 |
| Mumbai | ₹1,64,730 | ₹1,51,000 | ₹1,23,550 |
| Delhi | ₹1,64,860 | ₹1,51,120 | ₹1,23,650 |
Investment Insights
The ongoing geopolitical instability positions gold for a possible retest of its all-time highs, particularly if tensions persist. Analysts suggest that the immediate support level stands at ₹1.60 lakh per 10 grams, with resistance at ₹1.70 lakh and the historic peak at ₹1.84 lakh.
