Israel-Iran war buzz: MCX gold rate today at new high! Is it right time to buy? EXPLAINED with 5 reasons
Gold rate today: Gold prices on the MCX started Friday on a strong 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 ₹100,000 on MCX as geopolitical issues escalated further, with Israel attacks on Iran and nuclear sites rumoured to be targeted. Prices reacted with a ₹1500-1900 gain as Iran retaliation fears loom, which can create war-like situations between the two countries. On Comex, gold prices surged passed $3425, but Indian prices rose 2% due to rupee weakness, which fell by 60 paisa to 86.10. Support now likely at ₹98,000 and major resistance is at ₹102,500 in the short term,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
What’s behind the rally in gold prices?
Here are the key factors behind the surge in gold prices today:
1. Israel-Iran war
Tensions intensified in the Middle East as Israeli airstrikes on Iran raised concerns over potential retaliation. 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 dominate as the Middle East conflicts between Israel and Iran escalate. US stock indices also indicated this impact with a weaker opening. The US and Iran, too, are engaged in a long-standing power struggle,” said NS Ramaswamy, Head -Commodity desk and CRM – Ventura.
2. US-China trade war
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.
3. US inflation and rate cut expectations
Gold’s upward momentum is also being driven by easing inflationary pressures in the US. 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.
4. Weak rupee
A weakening Indian rupee has increased the cost of imported gold, pushing up domestic prices.
5. 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 the right time to buy gold?
According to market experts, the confidence in this asset can be seen as gold has delivered positive returns in 16 out of the 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.
