Gold prices witnessed a sharp decline on Monday, falling by ₹920 per sovereign as geopolitical tensions continued to weigh on global markets on the third day of the US–Israel war on Iran.
The price of 22-carat gold dropped to ₹1,25,270 per sovereign (8 grams), while the per gram rate fell by ₹115 to ₹15,660. On March 1, gold was priced at ₹1,26,200 per sovereign and ₹15,775 per gram.
Silver prices also registered a dip. The white metal decreased by ₹10 per gram to ₹315, translating to ₹3,15,000 per kilogram. On the previous day, silver had been trading at ₹325 per gram.
Despite the current correction, gold prices remain significantly higher compared to last year. On March 1, 2025, gold was priced at ₹63,520 per sovereign (₹7,940 per gram). As of March 2, 2026, the rate has nearly doubled to ₹1,25,280 per sovereign (₹15,660 per gram), marking an increase of ₹61,760 — a surge of about 97.2 per cent year-on-year.
In the past five days, gold has shown notable volatility. After touching ₹1,26,200 per sovereign on March 1, prices had stood at ₹1,24,600 on February 28 and hovered around the ₹1.19 lakh range between February 25 and 27.
Silver too has fluctuated during the same period. The metal traded at ₹325 per gram on March 1, ₹320 on February 28, and ₹295 between February 25 and 27 before witnessing the latest decline.
Market observers attribute the fluctuations to global uncertainty and shifting investor sentiment amid escalating tensions in West Asia.