Gold prices surged to fresh records on Monday amid escalating conflict between Israel and Iran, pushing investors towards the safety of the yellow metal. On the Multi Commodity Exchange (MCX) of India, gold reached a new high of ₹1,01,078 per 10 grams, surpassing the previous close of ₹1,00,276. However, profit-taking saw prices ease to ₹99,754 by afternoon trading. Globally, gold touched a five-month peak at $3,451 per ounce during Asian market hours.
Pranav Mer, Vice President of Commodity & Currency Research at JM Financial Services, noted:
“While gold prices dipped slightly on profit-booking, the underlying momentum remains positive as safe-haven demand persists amid the Israel-Iran conflict and ongoing trade tariff uncertainties. We expect some consolidation ahead of key central bank meetings this week, particularly the U.S. Federal Reserve’s policy announcement on Wednesday. Technical support levels stand at ₹99,450 and ₹98,400, with resistance near ₹1,00,700.”
Rahul Kalantri, VP Commodities at Mehta Equities, added:
“With global equities under pressure and crude oil prices climbing, precious metals have gained support. A weakening rupee could further lift domestic bullion prices. Gold support is seen at $3,415–3,385 and resistance at $3,458–3,470. For silver, support lies at $35.90–35.60 and resistance at $36.45–36.65. In Indian rupees, gold support ranges from ₹99,620 to ₹99,390, with resistance at ₹1,00,650 to ₹1,00,940, while silver support and resistance are at ₹105,550–₹104,750 and ₹1,06,300–₹1,06,950, respectively.”
Amod Khanorkar, Chief Rating Officer at Infomerics Valuation and Ratings, commented:
“Gold’s safe-haven appeal amid geopolitical tensions is driving an upward bias in prices. For India, fluctuations in crude oil prices—closely tied to regional stability—also exert a significant influence. Such conflicts typically impact credit markets negatively, except for limited exceptions.”
Industry analysts observe sustained upward pressure on gold due to ongoing geopolitical instability in vital oil-producing regions. These tensions are reverberating through commodity markets and global economic indicators, reinforcing gold’s role as a preferred asset for investors seeking security amid uncertainty. The metal’s performance highlights its critical function as a hedge against geopolitical risk, providing stability in turbulent times.
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