Gold prices gained around 2–3% in the last few sessions mainly due to rising Iran–Israel–US tensions, which increased safe-haven buying
FinTech BizNews Service
Mumbai, March 2, 2026: In the short term, gold prices may stay firm if geopolitical risks continue, believes Satish Dondapati, Fund Manager, Kotak Mahindra AMC.
Dondapati, explains: “Gold prices are trading close to recent highs, gaining around 2–3% in the last few sessions mainly due to rising Iran–Israel–US tensions, which increased safe-haven buying. In the short term, prices may stay firm if geopolitical risks continue. However, if the situation cools down, some profit booking or a temporary correction can be seen.
In the near term, a strong US dollar may limit upside, as gold generally moves opposite to the dollar. If the dollar strengthens further, gold could face pressure.
Medium to long term outlook remains positive. Global investor allocation to gold is still low at around 2–3%^ of total financial assets, leaving room for higher allocation. Central banks are buying heavily, averaging close to 1,000 tonnes per year. At the same time, global debt has crossed $300 trillion, raising fiscal and currency risks. Ongoing de-dollarisation by some countries is also supporting long-term gold demand.”
