Gold prices significantly surged on June 13 as rising geopolitical tensions between Israel and Iran boosted the safe-haven appeal of the yellow metal. Gold futures on the Multi Commodity Exchange (MCX) hit an all time high by crossing the Rs 1 lakh per 10 grams mark for the first time ever.
Gold's August contracts hit a fresh lifetime high of Rs 1,00,403 per 10 grams, while the contracts with October expiry hit an all time high of Rs 1,01,295 per 10 grams on the MCX.
Domestic gold prices also significantly surged. The price of 10 grams of 24 carat gold jumped Rs 2,120 in one session to hit Rs 1,01,400, according to data on Good Returns.
Israel carried out what it called as "preemptive strikes" against Iran. Israeli Prime Minister Benjamin Netanyahu said the airstrikes were aimed at key parts of Iran's nuclear and military program. "We struck at the heart of Iran's nuclear enrichment program, Iran's nuclear weaponization program, Iran's main enrichment facilities, leading nuclear scientists, and ballistic missile programs," Netanyahu said.
Iran retaliated by launching over 100 drones at Israel, raising concerns over a possible full-blown war in the oil-rich middle east.
Rupee breached the 86-mark against the dollar at open, falling 55 paise against the American currency. Notably, a fall in rupee also shoots up gold prices.
"The broader uptrend in gold remains intact, with heightened sensitivity to geopolitical developments fueling fresh buying interest. Technically, key support remains at $3290 on Comex and ₹96,000 on MCX, while immediate resistance is seen at $3400 and ₹99,500 respectively," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
"Geopolitical tensions in the Middle East have added to the risk-off sentiment, supporting safe-haven demand for gold. Meanwhile, South Africa's gold output declined slightly, subtracting 0.3 percentage points from the annual change in total mining production," said Tejas Shigrekar, Chief Technical Research Analyst Commodities and Currencies at Angel One.
Speaking about the outlook for gold, Shigrekar said, "For the next week, we expect GOLD prices to find support in the 96,600- 96,400 level range. Trading consistently below 96,400 levels would lead towards the strong support at 95,800 levels and then finally towards major support at 95,100 levels. Resistance is now observed in the range of 100,300-100,500 levels. Trading consistently above 100,500 levels would lead towards the strong resistance at 101,200 levels and then finally towards the major resistance at 117,000 levels."
Amod Khanorkar, Chief Rating Officer at Infomerics Valuation and Ratings, meanwhile said, "Given the geopolitical issues, gold is a safe haven and will have an upward bias in prices as a result of the conflict. Also, for India, movement in crude has a significant impact, directly or indirectly. The conflicts, such as what we are witnessing now, have, by and large, a negative connotation for credits, barring a few."
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
