Gold prices surged above $3,400 an ounce again on Friday amid rising geopolitical tensions, pushing futures on the Multi Commodity Exchange (MCX) past ₹1 lakh per 10 grams. The spike came after Israel launched air raids on Iran, killing its security chief.
In Mumbai’s spot market, gold rose more than ₹1,000 per 10 grams from Thursday’s close, reaching ₹97,164 in the morning session. On MCX, gold futures for August delivery hit a high of ₹1,00,403 per 10 grams before settling at ₹99,841 by 1 p.m. IST.
Globally, gold was last quoted at $3,416.07 an ounce, marking a 0.89% gain for the day. This week, the precious metal has gained over 3%, and its price has risen more than 30% since the start of the year.
Renisha Chainani, Head of Research at Augmont, said the surge above $3,400 reflects investors seeking safety amid growing economic uncertainty and geopolitical worries.
Colin Shah, Managing Director of Kama Jewelry, said the rise past ₹1 lakh on MCX was expected given the recent geopolitical developments and the weakening Indian rupee. He explained that uncertainty drives demand for gold as a safe investment compared to other assets. However, he warned that gold prices might face resistance that could keep them below ₹1 lakh in the short term.
Chainani added that gold prices have broken past their resistance level of $3,425 and could soon approach the previous high of $3,500.
Shah also noted that prices might see some corrections due to market volatility. He expects gold to trade in the range of ₹1,00,200 to ₹1,00,500 on MCX, depending on international economic factors.
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