Did Gold Surpass Rs 1 Lakh on MCX Due to Israel-Iran Tensions?
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Synopsis
The surge in gold prices on the MCX, crossing Rs 1 lakh per 10 grams due to heightened geopolitical tensions, reflects the increased safe-haven demand. Experts predict fluctuations in prices depending on international developments.
Key Takeaways
- Gold prices exceeded Rs 1 lakh due to geopolitical tensions.
- MCX gold opened at Rs 99,500, surged to Rs 1,00,403.
- Retail gold prices also increased.
- Heightened tensions between Israel and Iran contributed to the rise.
- Gold is traditionally viewed as a safe-haven asset.
New Delhi, June 13 (NationPress) Gold prices on the Multi Commodity Exchange (MCX) experienced a significant rise on Friday, exceeding the Rs 1 lakh threshold per 10 grams.
This increase was attributed to escalating geopolitical tensions in the Middle East, which heightened the safe-haven demand for the precious metal. Silver also saw a boost in its early trading.
MCX gold commenced trading up by Rs 1,108 or 1.12 percent at Rs 99,500 per 10 grams, compared to the previous closing price of Rs 98,392.
Shortly after, the price skyrocketed to Rs 1,00,403, surpassing the Rs 1 lakh level for the first time. As of 12:44 p.m., gold was trading at Rs 99,673.00, reflecting an increase of 1.30 percent.
Furthermore, retail gold prices in India mirrored this surge. Data from the India Bullion and Jewellers Association (IBJA) indicated that around 12:50 p.m., 22-carat gold was priced at Rs 9,679 per gram, while 24-carat fine gold reached Rs 9,917 per gram.
Silver followed suit, opening at Rs 1,06,450 per kg, up Rs 565 or 0.53 percent from its last close of Rs 1,05,885.
It peaked at Rs 1,06,799 and was trading at Rs 1,06,328.00 per kg, showing an increase of 0.42 percent by 12:45 p.m.
This rise in domestic prices aligns with the global market trends, where gold reached its highest point in over a month.
Spot gold increased by 1.3 percent to $3,428.28 per ounce after hitting its peak since May 7. US gold futures rose by 1.4 percent to $3,449.60. The metal has gained over 3.5 percent this week alone.
The surge in bullion prices comes amid intensified tensions between Israel and Iran. Reports suggest that Israel conducted airstrikes targeting Iran’s nuclear and military sites, escalating fears of further conflict in the region.
Such geopolitical uncertainties typically drive investors towards gold, regarded as a safer asset during crises.
Colin Shah, Managing Director of Kama Jewelry, remarked on the recent surge, stating, "The gold prices in India reaching an all-time high aligns with expectations given the latest geopolitical developments and the weakening of the Indian Rupee."
He also mentioned that while gold prices might encounter resistance in the short term, they are expected to fluctuate between Rs 1,00,200 and Rs 1,00,500 per 10 grams on the MCX, contingent on the unfolding of international economic and political events.
Point of View
I emphasize the importance of understanding the dynamics of the gold market in light of geopolitical uncertainties. The recent surge highlights the interplay between global events and commodity prices, underscoring the necessity for informed investment decisions.
NationPress
14/06/2025
Frequently Asked Questions
What caused the rise in gold prices?
The increase in gold prices is primarily due to heightened geopolitical tensions, particularly between Israel and Iran, which has increased safe-haven demand for gold.
How much did gold prices increase?
Gold prices on the MCX rose by Rs 1,108 or 1.12 percent, crossing the Rs 1 lakh mark.
What are the current prices for silver?
Silver opened at Rs 1,06,450 per kg, reflecting a gain of Rs 565 or 0.53 percent.
What is the outlook for gold prices?
Experts predict that gold prices may experience short-term resistance but will likely fluctuate between Rs 1,00,200 and Rs 1,00,500 per 10 grams based on international events.
How do geopolitical tensions affect gold prices?
Geopolitical uncertainties typically drive investors towards gold, viewing it as a safer asset during times of crisis.
