New Delhi – Gold prices soared on the Multi Commodity Exchange (MCX) on Friday, breaching the ₹1 lakh mark per 10 grams for the first time, as escalating tensions between Israel and Iran fueled a spike in demand for safe-haven assets.
MCX gold opened with a sharp rise of ₹1,108 or 1.12%, starting the day at ₹99,500 per 10 grams compared to the previous close of ₹98,392. Prices quickly jumped to ₹1,00,403, crossing the ₹1 lakh milestone. By 12:44 p.m., gold was trading at ₹99,673, up 1.30%.
The surge was mirrored in retail markets. According to the India Bullion and Jewellers Association (IBJA), as of 12:50 p.m., 22-carat gold was priced at ₹9,679 per gram, while 24-carat gold stood at ₹9,917 per gram.
Silver prices also climbed in early trading. On MCX, silver opened at ₹1,06,450 per kg, up ₹565 or 0.53% from the previous close of ₹1,05,885. It touched a high of ₹1,06,799 and was trading at ₹1,06,328 per kg, up 0.42% by 12:45 p.m.
The domestic rally follows global trends, with international gold prices reaching their highest levels in over a month. Spot gold rose 1.3% to $3,428.28 an ounce, marking its strongest performance since May 7. US gold futures also climbed 1.4% to $3,449.60. So far this week, gold has gained more than 3.5%.
The spike in bullion prices comes amid reports of Israeli airstrikes on Iranian nuclear and military targets, heightening fears of a broader conflict in the Middle East. In times of geopolitical instability, investors often flock to gold as a secure store of value.
Colin Shah, Managing Director of Kama Jewelry, noted, “The all-time high in Indian gold prices is in line with expectations, considering the geopolitical developments and the weakening Indian Rupee.”
He added that while some resistance in gold prices could be expected in the short term, they are likely to hover between ₹1,00,200 and ₹1,00,500 per 10 grams on MCX, depending on how global political and economic events unfold.
With inputs from IANS