Gold prices have skyrocketed past the ₹1 lakh mark on the Multi Commodity Exchange (MCX), driven by safe-haven demand following escalating geopolitical tensions between Israel and Iran. Analysts warn that if the conflict intensifies, gold could surge further, potentially reaching ₹1.05 lakh per 10 grams.
Key Drivers Behind the Gold Rally
- Middle East Conflict: Israeli airstrikes on Iranian nuclear infrastructure have heightened global risk aversion, reinforcing gold’s appeal as a safe-haven asset.
- Weakening US Dollar: The US Dollar Index has dropped to a three-year low, amplifying gold’s gains in emerging markets.
- Interest Rate Cut Expectations: With US inflation cooling to 2.4%, markets anticipate a Federal Reserve rate cut, further boosting bullion prices.
Gold’s Record-Breaking Performance
- MCX gold rate: ₹1,00,314 per 10 grams, after touching an intraday high of ₹1,00,681.
- Spot gold price: $3,428.10 per ounce, inching closer to its all-time high of $3,500.05.
- Year-to-date (YTD) gains: Gold has surged 31% in 2025, reaffirming its position as a top-performing asset class.
Future Outlook
Experts predict that if Israel-Iran tensions escalate, another wave of safe-haven buying could push gold prices toward ₹1,05,000 per 10 grams. Investors are advised to monitor geopolitical developments and market trends closely.
