Gold, silver ETFs jump up to 6% as Mideast war boosts safe-haven demand. Should you buy now?

Gold and silver ETFs surged nearly 6% on Tuesday as bullion prices opened sharply higher on the MCX. A flight to safe-haven assets intensified amid escalating Middle East tensions involving the United States, Israel and Iran, with crude oil prices holding above $100 per barrel and adding to global market uncertainty.

Among 18 silver ETFs, Axis Silver ETF gained the most to hit the day’s high of Rs 257.4, up 6% against the previous close of Rs 242.39. Angel One Silver ETF rose 5%, whereas the other 16 silver ETFs gained between 3% to 4% on Tuesday.

There were 25 gold-based exchange-traded funds (ETFs) which gained between 1% to 3% on Tuesday.

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Rishi Raj Deva, Associate at Kredere Wealth, told ETMutualFunds that rising crude prices amid the US-Iran conflict — which escalated further over the weekend with US strikes on Kharg Island — are dampening rate-cut expectations and strengthening the dollar, weighing on gold and silver ETFs in the near term.With the Fed meeting starting March 17, volatility is likely to persist. Long-term investors can use dips to accumulate, with $5,000 remaining a key support level for gold, he added.
MCX silver futures due May 2026 were up Rs 4,932 or 1.7% to Rs 2,61,457 per kg. Meanwhile, gold futures for April 2026 delivery gained Rs 1,260 or 1% to Rs 1,56,996 per 10 grams.
The gains come despite the dollar inching higher, making dollar-denominated bullion more expensive for holders of other currencies. Oil prices also remained elevated, holding above $100 per barrel as the U.S.-Israeli war against Iran has kept the Strait of Hormuz largely shut, marking the biggest disruption to global supplies on record.
As of March 2026, investors should prioritise maintaining SIP discipline despite current market volatility, as staying invested during corrections has historically been more rewarding than attempting to time the market, according to Abhishek Bhilwaria, BhilwariaMF, an AMFI-registered MFD, told ETMutualFunds.

He further said that with the 12.5% LTCG tax and 20% STCG tax now in effect for equity, it is vital to utilise tax-loss harvesting before the March 31 financial year-end to offset gains and consider shifting to multi-asset allocation funds if your risk tolerance has decreased, ensuring your portfolio remains “true-to-label” under the stricter mandate overlap rules.

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In the international market, yellow metal prices were largely steady. In early trade, spot gold edged up 0.1% to $5,007.61 per ounce as of 0110 GMT, while U.S. gold futures for April delivery rose 0.2% to $5,011.70. Meanwhile, spot silver slipped 0.2% to $80.58 per ounce.

Anup Bhaiya, Founder, Money Honey Wealth Services, shared with ETMutualFunds that after a sharp rally, gold and silver saw profit-taking yesterday but remained supported by geopolitical risks and rate-cut hopes, and investors should avoid panic, use dips to gradually accumulate, and keep allocations disciplined within their long-term asset mix.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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