The Indian gold market is experiencing a surge in prices, with 24 carat gold reaching Rs 15,693 per gram as of September 1, 2026, marking an increase of Rs 16 from the previous day's close.

The price hike is largely attributed to global events, particularly the escalating military conflicts between the US and Iran. The situation escalated after Iranian forces shot down a US MQ-9 drone above the eastern Strait of Hormuz, prompting President Donald Trump's promise to "hit them hard" in retaliation.

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Crude oil prices have also skyrocketed, surpassing $91 per barrel, which has stoked inflation concerns and reshaped central bank interest rate forecasts. This has triggered a global selloff in sovereign debt, sending government bond yields to multi-year highs across the US, Europe, and Japan.

The spike in crude oil prices has had a ripple effect on precious metal markets, with gold and silver prices experiencing fluctuations. Despite high 15% tax rates, gold and silver prices took a short dip when international panic subsided, only to be driven back up

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Domestic bullion markets have mirrored these broader financial strains, with local gold prices fluctuating in line with international spot rates, shifting import tariffs, and currency movements. As investors seek safe-haven assets amidst sharp volatility across energy markets, gold has emerged as a popular choice.

The situation remains fluid, with both countries having scrapped the 60-day ceasefire agreement and restarted active fighting. The fragile deal's collapse has driven investors toward gold, which is now trading at Rs 15,693 per gram for 24 carat gold, Rs 14,385 per gram for 22 carat gold, and Rs 11,770 per gram for 18 carat gold.