Gold prices on the Multi Commodity Exchange of India (MCX) crossed the Rs 1 lakh mark for the first time ever on Friday, June 13, as geopolitical tensions flared after Israel’s preemptive strikes on Iran’s nuclear facilities late Thursday. The conflict in the Middle East drove investors to seek safety in the yellow metal, traditionally viewed as a hedge against uncertainty.
The August 2025 Futures contract of Gold gained 2 per cent to hit a lifetime high of Rs 1,00,403 per 10 grams.
In the international market, Comex Gold August 2025 Futures surged 1.9 per cent to a new all-time high of $3,476 an ounce.
The escalating Middle East conflict also weighed heavily on the domestic equity market, triggering a broad-based weakness. As of 1 PM, the Sensex was trading lower by some 680 odd points, or 0.83 per cent, to trade around the 81,000 level. Similarly, the Nifty 50 index traded 210 points, or 0.85 per cent lower below the 24,700-mark. The broader market indices - Nifty Midcap 100 and Nifty Smallcap 100, too, traded in the red, down by nearly 1 per cent each.
The selloff in the equity market helped gold extend its rally, as investors sought safety in the bullion amid rising geopolitical uncertainty and mounting fears of global instability.
Gold Rate: What Analysts Say
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, the sharp rally was fueled by concerns over possible retaliation from Iran, which can create war situations between the two. Trivedi noted that the gain in domestic gold prices was also supported by a weaker rupee, which slipped by 60 paise to 86.10 per dollar.
Adding to what Trivedi said, Tejas Shigrekar, Chief Technical Research Analyst – Commodities and Currencies at Angel One, also attributed the gain in gold futures to the decline in US dollars. He said, gold futures climbed as the US dollar continued its downward trajectory, which has declined roughly 10 per cent this year and recently hit its lowest level since April, a three-year low.
Shigrekar noted that the dollar's weakness followed a tepid market reaction to the US-China trade truce and was further weighed down by softer US CPI data ahead of the upcoming Federal Reserve meeting.
A slight decline in South Africa’s gold output, which subtracted 0.3 percentage points from the annual change in total mining production, also supported prices, Shigrekar said.
Gold Outlook
Looking ahead to the coming week, Shigrekar expects gold to find support in the Rs 96,600 to Rs 96,400 range. A sustained move below Rs 96,400 could push prices toward key support levels at Rs 95,800 and Rs 95,100. On the upside, resistance is seen in the Rs 1,00,300 to Rs 1,00,500 zone. If prices hold above Rs 1,00,500, the next targets could be Rs 1,01,200 and, eventually, a major resistance at Rs 1,17,000, he said.
According to Trivedi, the key support now lies at Rs 98,000, while the next major resistance is seen around Rs 1,02,500 in the short term.
