Israel-Iran tension: MCX gold price crosses Rs 1 lakh mark

Gold prices on MCX crossed the Rs 1,00,000 mark after Israel attacked Iran's nuclear facility. The rising geopolitical conflict in the Middle East increased safe-haven bets for the yellow metal. The MCX gold rate opened at Rs 99,500, marking a rise of Rs 1,108, or 1.12%, from its previous close of Rs 98,392. It then climbed to Rs 100288. Similarly, MCX silver prices increased by Rs 565, or 0.53%, opening at Rs 1,06,450 per kilogram, compared to Rs 1,05,885 previously.

In the international arena, the Gold Price (XAU/USD) rose to over five-month highs near $3,425 during the Asian trading hours on Friday.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd said, "In the international market, gold prices are expected to find support near $3,380, with resistance at $3,465. Domestically, key levels are seen at Rs 99,000 for support and Rs 1,01,450 as resistance. Given the recent sharp rally and heightened volatility driven by escalating geopolitical tensions, it is advisable to adopt a wait-and-watch approach before taking new positions.” 

The precious metal is on course for a weekly gain as global investors seek refuge amid growing volatility. This geopolitical tension has notably impacted the commodities market, which often witnesses a shift towards precious metals during such periods of instability. The rising prices underscore the market's reaction to the unfolding events in the Middle East, reflecting broader concerns regarding potential impacts on global stability and economic conditions.

Amod Khanorkar, Chief Rating Officer at Infomerics Valuation and Ratings 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."

Industry analysts warn that if the geopolitical situation remains unresolved, the upward trajectory of gold prices might continue. Persistent conflict in vital oil-producing regions could further influence not only the commodities market but also broader economic indicators. Investors are closely tracking the developments, as the precious metals market continues to reflect these dynamics, demonstrating gold's enduring role as a hedge against geopolitical risk. This trend highlights gold's standing as a central asset for investors seeking security amid global uncertainty.