Gold prices surged on the Multi Commodity Exchange (MCX) amid escalating tensions between Iran and Israel, driving up demand for the safe-haven asset. Gold futures for June 5, 2024, reached Rs 72,813 per 10 grams on the MCX, up 0.74% from the previous day. In the international market, prices rose by 0.16% to $2,386.8 an ounce in New York.
Retail gold prices in India surpassed Rs 73,000 for 10 grams of 24-carat gold, with Delhi prices at Rs 73,310 and Mumbai at around Rs 73,160. The recent conflict between Iran and Israel has prompted investors to move towards safe-haven assets. Colin Shah, MD of Kama Jewelry, stated, “The price trend of gold breaching new highs due to the conflict has led investors to withdraw from riskier avenues and reinvest in gold.”
Navneet Damani of Motilal Oswal Financial noted that gold and the dollar index are currently moving in tandem, emphasizing the market’s focus on geopolitical tensions over interest rate changes. Jewellery exports from India may also slow down due to higher crude prices and tensions, affecting sentiment in international markets. This shift towards gold is driven by concerns surrounding the escalating conflict between Iran and Israel.
