Despite a rally in the US dollar index, gold prices continued to climb during early trading on Monday. On the Multi Commodity Exchange (MCX), gold rates opened higher at ₹72,214 per 10 grams and reached an intraday high of ₹72,362 per 10 grams shortly after the market opened. In the international market, spot gold price is trading around $2,360 per troy ounce, marking a 0.70 percent increase from Friday’s close.
The rise in gold prices is primarily attributed to escalating tensions between Iran and Israel amid the ongoing Middle East crisis. Geopolitical uncertainty has led to a rush into safe-haven assets, driving gold prices up by 1.60 percent. Despite this sharp increase, the overall trend in gold remains bullish, with strong support seen at the ₹70,000 per 10 grams mark.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, noted, “Gold and silver prices are rising despite the continuous rally in the US dollar index. The US dollar index touched 106 levels and the US dollar rate has hit a 34-year high against the Japanese Yen, but the escalating tension in the Middle East has pushed demand for the safe haven.”
Following Israel’s counterattack on Iran, geopolitical tensions in the Middle East have intensified. Iran’s firing of more than 300 drones and missiles at Israel, in response to a strike on its consulate in Syria, has further heightened the crisis. Efforts to de-escalate the situation are underway, with US Secretary of State Antony Blinken and Defense Secretary Lloyd Austin engaging with regional counterparts.
In terms of gold price levels, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, stated, “The precious metal has seen significant gains in a short period, soaring from ₹62,200 to ₹72,800 per 10 grams, marking a nearly 17% increase. With geopolitical tensions prevailing, gold is expected to continue its upward trajectory, with near-term targets of ₹73,700 and ₹75,200. Support levels are anticipated near the ₹70,200 mark.”
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