In an unexpected turn of events on the Multi Commodity Exchange (MCX), gold prices jumped significantly, crossing the Rs 1 lakh mark per 10 grams on Friday. This increase came amid escalating geopolitical tensions in the Middle East, which boosted the safe-haven demand for gold.
As the market opened, MCX gold soared higher by Rs 1,108, marking a 1.12 percent increase from its previous close of Rs 98,392. It didn’t take long for the price to breach the symbolic Rs 1 lakh threshold, reaching a momentous Rs 1,00,403 for the first time ever during the trading day.
By 12:44 p.m., gold was trading at Rs 99,673.00, reflecting a steady increase of 1.30 percent. This surge not only reflects local dynamics but hints at broader global trends influencing the precious metal’s market value.
Retail gold prices followed suit, with the India Bullion and Jewellers Association (IBJA) reporting that around 12:50 p.m., 22-carat gold was priced at Rs 9,679 per gram, while 24-carat fine gold was at Rs 9,917 per gram. These figures emphasize the increasing demand among consumers and investors alike.
Silver also mirrored this upward trajectory. Opening at Rs 1,06,450 per kg, silver gained Rs 565 or 0.53 percent from its last close. It peaked at Rs 1,06,799 during the day and was trading at Rs 1,06,328.00 per kg by 12:45 p.m., up 0.42 percent.
The rise in domestic prices underscores a significant ripple effect from the global market, where gold has seen a resurgence in value, climbing to its highest levels in over a month. Spot gold rose by 1.3 percent to $3,428.28 per ounce, hitting levels not seen since May 7. Meanwhile, US gold futures increased by 1.4 percent, standing at $3,449.60. Importantly, the precious metal has gained over 3.5 percent just this week alone.
This surge in bullion prices is not happening in a vacuum. The backdrop of heightened tensions between Israel and Iran plays a crucial role in shaping market responses. Recent reports indicated that Israel conducted airstrikes targeting Iran’s nuclear and military facilities, raising substantial fears of escalating conflict in the region.
Such geopolitical uncertainties often lead investors to seek refuge in gold, traditionally viewed as a safer asset during times of crisis. It is during these turbulent periods that gold shines as a reliable investment, prompting many to bolster their portfolios with precious metals.
Colin Shah, Managing Director of Kama Jewelry, provided insight into these developments, noting that the recent hike in gold prices is in line with expectations given the current geopolitical climate and the weakening of the Indian Rupee. Shah suggested that while there might be short-term resistance at these new heights, gold is likely to crowd the Rs 1,00,200 to Rs 1,00,500 range per 10 grams on the MCX.
In conclusion, as gold prices soar past the Rs 1 lakh milestone, the dual forces of market sentiment and global events are shaping the landscape for investors. Whether this is a temporary spike or a shift in longer-term value remains to be seen, but one thing is certain: geopolitical events can have a profound impact on markets worldwide, and gold continues to be the go-to safe-haven investment.
As we watch the situation unfold, it will be interesting to see how both investors and consumers respond in the coming weeks. Will they continue to flock to gold amidst uncertainty? Only time will tell, but for now, it’s a golden moment for the metal that has captured the world’s attention.