Gold Price Prediction: Yellow Metal Hits Rs 1 Lakh Again Amid Israel-Iran Tensions

Gold Price Today: Gold prices in India soared to an all-time high for the third consecutive session on Friday, driven by geopolitical tensions in the Middle East and a weakening rupee. On the Multi Commodity Exchange (MCX), gold futures for August delivery jumped by Rs 2,011, or 2.04%, to hit a record Rs 1,00,403 per 10 grams in early trade.

Later, it traded at Rs 100,145, still up by Rs 1,753, or 1.78%, with an open interest of 16,602 lots.

This surge comes shortly after gold futures had previously touched the Rs 1,00,000 mark on April 22. Continuing the rally, the October contracts also rose sharply by Rs 1,970, reaching a fresh high of Rs 1,01,295 per 10 grams on the MCX.

Analysts say this upward movement in gold prices is primarily driven by escalating geopolitical concerns and a decline in the value of the Indian rupee. On Friday, the rupee weakened sharply, falling 56 paise to Rs 86.08 against the US dollar.

The fall was attributed to a rise in global crude oil prices and strong demand for the dollar following heightened conflict in the Middle East.

The current round of tensions stems from Israel’s preemptive strikes on Iran’s nuclear sites. This triggered fears of a broader conflict in the region. Following the attacks, Israeli Defence Minister Israel Katz declared a special state of emergency and warned of potential retaliatory missile and drone attacks on Israeli citizens.

These developments have led investors to flock to safe-haven assets like gold, driving prices higher globally and in India.

Technical experts also see more upside for the yellow metal.

According to Dr Renisha Chainani, Head of Research at Augmont, “Gold prices have given a breakout of their resistance of $3,425 (around Rs 99,000), and now it seems we are heading towards the previous high of $3,500 (around Rs 1,01,000) in the near term.”

She also noted that silver is consolidating after a sharp rally and is currently trading between $36.5 (Rs 1,06,000) and $37 (Rs 1,07,000). If the positive momentum continues, the next target for silver is $38 (Rs 1,11,000).

“We believe gold is in the process of making a new high beyond its April 25 levels of $3500/Oz and that investors should stay positive on the metal for more than the above reasons. We have also recommended aggressive accumulation in silver, which too could be headed towards previous highs in the next few weeks,” said Mr Sandip Raichura, Executive Director, CEO Retail and Distribution – PL Capital Group.”

On the global front, gold futures climbed by $41.62 per ounce, or 1.22%, to trade at $3,444.02 per ounce. The momentum is further supported by economic uncertainty in the U.S. Recent data showed softer-than-expected consumer and producer inflation figures, raising expectations that the U.S. Federal Reserve may cut interest rates further this year.

Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors.