Gold rate today: Gold prices on the MCX started Friday on a stronger note, mirroring the uptrend in global bullion markets amid escalating geopolitical tensions in the Middle East, which boosted demand for the yellow metal as a safe haven. Silver prices continued to rise as well.
MCX gold opened with a gain of ₹1,108 or 1.12%, at ₹99,500 per 10 grams, compared to the previous close of ₹98,392. During the session, it surged to a high of ₹100,403.
“Gold prices surged sharply crossing 100000rs in MCX, Geopolitical issues escalating further with Israel attacks on Iran and Nuclear sites rumoured to be targeted. Prices react with 1500-1900rs gains as Iran retaliate treats looms which can create war situations between the two. In comex prices surged passed 3425$ gains of 50$ but Indian price rose 2% due to rupee weakness which fell by 0.60rs to 86.10. Support now looked at 98000 and major resistance which is extended levels at 102500 in short term,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
What’s behind the rally in gold prices?
Israel-Iran war
Tensions intensified following Israeli airstrikes on Iran, raising concerns over potential retaliation. In response, Israel has announced a state of emergency, bracing for possible missile and drone assaults, while the United States is preparing evacuation measures for civilians in the area.
“Risk off sentiments dominates as middle east conflicts between Israel and Iran escalate. US stock indices too indicated this impact with a weaker opening. US and Iran too is engaged in a long-standing power struggle,” said NS Ramaswamy Head -Commodity desk and CRM – Ventura.
US-China trade
Investor concerns have deepened due to the uncertainty around US-China trade talks, further intensified by President Donald Trump’s warning of potential unilateral tariffs within the next two weeks, prompting a shift toward traditional safe-haven assets.
US inflation and rate cut expectations
Gold’s upward momentum is also being driven by easing inflationary pressures in the U.S. Recent inflation data has strengthened expectations of aggressive interest rate cuts by the Federal Reserve, although concerns remain about the potential impact of upcoming tariffs.
Weak Rupee and Dollar
A weakening Indian rupee has increased the cost of imported gold, pushing up domestic prices. Meanwhile, the US dollar has lost ground against major global currencies, partly due to expectations that the Federal Reserve may pause its interest rate hikes.
Global trends
Spot gold jumped 1.3% to $3,428.28 an ounce, reaching its highest level since May 7, while US gold futures advanced 1.4% to $3,449.60 an ounce. The metal has surged more than 3.5% so far this week.
Is it right time to buy gold?
According to market experts, the confidence in this asset can be seen as gold has delivered positive returns in the 16 out of past 20 years, indicating the reliability of the metal in uncertain situations and this consistency over the past two decades clearly underscores its role as a safe haven asset.
“ Gold’s safe-haven appeal is likely to remain strong, particularly amid ongoing global uncertainties. It remains a critical asset in the portfolios of investors seeking stability and protection from volatility. Gold in the international COMEX market is likely to surpass the $3509 high from the present $3430 levels and create a high of $3540 in the short term with resistance at $3476. Support for COMEX Gold is seen at $3400 and $3345,” Ramaswamy said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
