New Delhi: Gold prices on the Multi Commodity Exchange (MCX) opened with a sharp jump on Friday, crossing the Rs 1 lakh mark per 10 grams.
The rally came as rising geopolitical tensions in the Middle East boosted safe-haven demand for the yellow metal. Silver prices also gained in early trade.
MCX gold opened higher by Rs 1,108 or 1.12 per cent at Rs 99,500 per 10 grams, compared to the previous close of Rs 98,392.
Soon after, the price surged to Rs 1,00,403, breaching the Rs 1 lakh level for the first time. At 12:44 p.m., gold was trading at Rs 99,673.00, up 1.30 per cent.
Additionally, retail gold prices in India also reflected the rise. According to data from the India Bullion and Jewellers Association (IBJA), around 12:50 p.m., 22-carat gold was priced at Rs 9,679 per gram, while 24-carat fine gold stood at Rs 9,917 per gram.
Silver followed a similar trend, opening at Rs 1,06,450 per kg, up Rs 565 or 0.53 per cent from its last close of Rs 1,05,885.
It touched a high of Rs 1,06,799 and was trading at Rs 1,06,328.00 per kg, up 0.42 per cent at 12:45 p.m.
The rise in domestic prices mirrors the global market, where gold climbed to its highest level in over a month.
Spot gold rose 1.3 per cent to $3,428.28 an ounce after hitting its highest since May 7. US gold futures were up 1.4 per cent at $3,449.60. The metal has gained over 3.5 per cent so far this week.
The rally in bullion comes amid heightened tensions between Israel and Iran. Reports suggest that Israel carried out airstrikes targeting Iran’s nuclear and military facilities, raising fears of further conflict in the region.
Such geopolitical uncertainties tend to push investors towards gold, which is seen as a safer asset during times of crisis.
Colin Shah, Managing Director of Kama Jewelry, commented on the recent surge, saying, “The gold prices in India hitting an all-time high is on expected lines given the latest developments in geopolitical tensions and the weakening of the Indian Rupee.
He added that while gold prices are likely to face resistance in the short term, they may hover between Rs 1,00,200 and Rs 1,00,500 per 10 grams on the MCX, depending on how international economic and political events unfold.
(IANS)
