Gold Prices Breach ₹1 Lakh Mark for First Time Amid Middle East Tensions

In a historic milestone, gold prices crossed the ₹1 lakh per 10 grams mark for the first time ever on June 13, driven by escalating geopolitical tensions between Israel and Iran. The surge reflects renewed demand for the yellow metal as investors seek safety during uncertain times.

Gold Hits Lifetime Highs on MCX

On the Multi Commodity Exchange (MCX), August gold contracts touched a fresh record of ₹1,00,403 per 10 grams, while October contracts soared to ₹1,01,295 per 10 grams. These levels mark the highest ever recorded in India’s domestic gold market.

This surge in gold prices underscores the strong safe-haven demand amid rising global uncertainty.

Traders and investors rushed to gold futures after fresh developments in the Middle East, where tensions flared up following Israel’s military action targeting Iran. The conflict has heightened fears of wider regional instability, pushing investors to move away from riskier assets.

Middle East Tensions Boost Safe-Haven Demand

Geopolitical instability continues to be one of the biggest drivers behind gold’s rally. As global investors become increasingly risk-averse, gold—long considered a safe-haven asset—has emerged as the preferred choice for capital preservation.

According to analysts, the risk-off sentiment intensified after renewed military activity between Israel and Iran. The geopolitical stress has led to concerns over oil supply disruptions, currency fluctuations, and volatility in equity markets—all of which support fresh buying interest in gold.

Rupee Weakens Further, Lifting Domestic Gold Prices

Adding to the upward momentum in domestic gold prices is the sharp fall in the Indian rupee, which breached the ₹86 per dollar mark, falling 55 paise in early trade. A weaker rupee typically makes gold imports more expensive, pushing prices higher in the local market.

A falling rupee is a major factor that accelerates the surge in gold prices for Indian consumers.

Expert Views: Trend Remains Bullish for Gold

Commenting on the current gold rally, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said:

“The broader uptrend in gold remains intact, with heightened sensitivity to geopolitical developments fueling fresh buying interest.”

He added that key support levels are seen at $3,290 on the COMEX and ₹96,000 on the MCX, while resistance lies at $3,400 and ₹99,500, suggesting the possibility of more upward movement if tensions persist.

Tejas Shigrekar, Chief Technical Research Analyst at Angel One, echoed similar sentiments.

“Geopolitical tensions in the Middle East have added to the risk-off sentiment, supporting safe-haven demand for gold,” he noted.

Shigrekar also pointed out that South Africa’s slight decline in gold output contributed marginally to tightening supply conditions, adding more weight to the price rally.

Gold Price Outlook: What’s Next?

Looking ahead, analysts believe that gold may continue its upward trajectory if geopolitical risks remain elevated.
Shigrekar provided a technical outlook:

• Support levels: ₹96,600–₹96,400, with strong supports at ₹95,800 and ₹95,100.

• Resistance levels: ₹1,00,300–₹1,00,500, with potential to rise up to ₹1,01,200 and even ₹1,17,000 if the momentum continues.

If gold prices trade consistently above ₹1,00,500, it could open the door to new record highs in the near term.

Investor Sentiment Strong Despite High Levels

Despite the sharp rise, investors are still viewing gold as a safe asset to hold during volatile periods. While such high prices might encourage profit booking in the short term, the broader sentiment remains positive, especially as uncertainties linger globally.

The demand for gold in India may continue to rise, particularly if the rupee remains weak and geopolitical conditions do not stabilize.

Conclusion

Gold prices breaching ₹1 lakh per 10 grams is a significant milestone in India’s commodity market history. This landmark reflects not just the impact of global tensions, but also the deep trust investors place in gold during uncertain times.

As long as the Middle East conflict persists and the rupee stays under pressure, gold is likely to retain its shine. Investors are advised to stay alert and monitor key levels, especially if tensions escalate further.