Gold prices cross ₹1L on MCX for first time ever
What's the story
Gold prices in India have hit an all-time high, breaching the ₹1 lakh mark on the Multi Commodity Exchange (MCX) for the first time. The surge comes amid a weak rupee and heightened geopolitical tensions in the Middle East. Domestic gold futures jumped 2% to touch ₹1,00,403 per 10gm in early trade today.
Market dynamics
Israel's airstrikes on Iran escalate geopolitical tensions
The price hike is largely attributed to Israel's airstrikes on Iran, which have intensified geopolitical tensions in the Middle East. Aksha Kamboj, VP of India Bullion and Jewellers Association, said "Gold prices extended their gains following Israel's airstrikes on Iran earlier today." She also warned that any further escalation could push gold prices even higher. The weakening Indian rupee has also made imported gold more expensive, further driving up domestic prices.
Price peaks
Global gold prices also surge
In the global market, spot gold rose 1.3% to $3,428.28 an ounce, its highest since May 7. US gold futures climbed 1.4% to $3,449.6 an ounce as bullion gained over 3.5% this week alone. Tim Waterer of KCM Trade said "the latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now," with investors turning toward safe-haven assets like gold and silver amid rising tensions between Israel and Iran.