Gold Prices Breach ₹1 Lakh Mark on MCX for First Time Ever

#Gold #GoldPrice #Gold1lakh

Geopolitical tensions, weak rupee, and global safe-haven demand drive record rally

Mumbai: Gold prices in India soared to an all-time high on Friday, crossing the historic ₹1 lakh per 10-gram level on the Multi Commodity Exchange (MCX) for the first time. The sharp rally reflects a perfect storm of international and domestic economic factors, including geopolitical instability, currency depreciation, and heightened demand for safe-haven assets.

🔺 Prices Hit ₹1,00,403 in Early Trade

Domestic gold futures rose by over 2% in morning trade, peaking at ₹1,00,403 per 10 grams. This psychological breakthrough comes amid increasing investor concern over the global outlook and India’s weakening rupee.

“Gold prices extended their gains following Israel’s airstrikes on Iran earlier today, intensifying the already fragile geopolitical landscape in the Middle East,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson at Aspect Global.

🧭 Key Drivers Behind the Surge

1. Geopolitical Escalation

• Rising tensions in the Middle East following Israeli military action against Iran have led to a spike in global uncertainty.

• Investors are moving capital into traditional safe-haven assets, particularly gold.

2. Weak Rupee

• The Indian rupee’s continued slide against the U.S. dollar has made gold imports costlier.

• India imports over 90% of its gold, so currency movements directly affect domestic prices.

3. Global Safe-Haven Demand

• Central banks worldwide are increasing gold reserves to hedge against inflation and currency volatility.

• Fears of a global economic slowdown have also driven retail and institutional demand for gold.

4. Fed Rate Outlook and Dollar Weakness

• Recent dovish signals from the U.S. Federal Reserve about possible interest rate cuts have weakened the dollar.

• Lower interest rates increase gold’s appeal as a non-yielding asset.

📉 Market Outlook: Volatility Ahead?

Market analysts suggest that if tensions in the Middle East escalate or the rupee weakens further, prices could continue to rise. However, any signs of geopolitical de-escalation or a rebound in the rupee could lead to some price correction.

“We are in uncharted territory now,” said one senior commodities trader. “If gold sustains above ₹1 lakh, it could set a new trading range for the rest of the year.”

📊 Gold Price Snapshot (as of June 13, 2025, 10:30 AM IST)