Gold Surges as Festive Demand Picks Up Amid Volatility

Gold prices surged on Friday amid expectations of strong demand ahead of the upcoming festive season. The price of gold has been volatile in recent months, influenced by movements in US Treasury yields and changing expectations around interest rates. According to Ajay Kedia, Director of Kedia Advisory, "New York Fed President John Williams indicated that another rate hike before year-end could be appropriate, increasing pressure on bullion despite continued structural support." Gold prices have remained highly volatile this year, with higher US yields and a stronger dollar putting pressure on prices at various points. However, gold traditionally performs well as a safe-haven asset during periods of geopolitical uncertainty. The price of 24-carat gold was trading around Rs 1,51,850 per 10 grams, while the price of 22-carat gold was around Rs 1,39,196 per 10 grams. Silver prices were also higher, with silver futures rising to Rs 2,34,151 per kg on the Multi Commodity Exchange (MCX).

The US-Israeli strikes on Iran began on February 28, 2026, putting pressure on gold and silver prices in international markets. Rising international prices have supported domestic bullion rates, with gold trading around Rs 1.51 lakh per 10 grams and silver around Rs 2.34 lakh per kg.