By buld_online 
The appeal of the yellow metal as a safe haven asset came to the fore on Friday as gold prices on MCX crossed the Rs 1,00,000 mark. This is the fastest rally ever by gold covering Rs 10,000/10 gm in just 74 days to reach Rs 1,00,000 today.
Rising tensions in the Middle East and highly volatile global markets have contributed to the rally in gold prices. Lower than expected US inflation data raised interest rate cut hopes which led to a rise in gold metal prices.
Israel attacked Iran’s nuclear facility last night adding uncertainty to equity markets and making gold a more pricier asset. The MCX gold rate opened at Rs 99,500, rising Rs 1,108, or 1.12%, from its previous close of Rs 98,392. It then climbed to a high of Rs 1,00,403 per 10 gm today.
On the global front, Gold Price climbed to over five-month highs near $3,425.
Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One expects gold prices to extend gains next week.
“Comex Gold and MCX gold futures prices have risen sharply in the week ( 9th June-13th June 2025) with week on week gain of around 3 percent respectively. Moreover, Gold prices have surged by Rs.10000/gm in just 74 days to around Rs.1,00,000/10 gms on June 13th 2025, marking its fastest rally for the year in the history of the asset class.
The price rise in gold has been on account of geo-political escalation of Israel-Iran conflict creating safe haven demand for the yellow metal. Along with this factor, the global recession fear and the US-China tariff situation has been slowly fuelling the rally in gold prices in recent months.
The confidence in this asset can be seen as gold has delivered positive returns in the 16 out of past 20 years, indicating the reliability of the metal in uncertain situations and this consistency over the past two decades clearly underscores its role as a safe haven asset. We expect the rally to continue in the week ahead and COMEX Gold might soon rally towards $3500/ounce mark while MCX gold might move higher towards Rs.1,02,000/10gm mark.”
Industry analysts warn that if the geopolitical situation remains unresolved, the upward trajectory of gold prices might continue. Persistent conflict in vital oil-producing regions could further influence not only the commodities market but also broader economic indicators.
Amod Khanorkar, Chief Rating Officer at Infomerics Valuation and Ratings said, “Given the geopolitical issues, gold is a safe haven and will have an upward bias in prices as a result of the conflict. Also, for India, movement in crude has a significant impact, directly or indirectly. The conflicts, such as what we are witnessing now, have, by and large, a negative connotation for credits, barring a few.”
Rahul Kalantri, VP Commodities, Mehta Equities Ltd said, “In the international market, gold prices are expected to find support near $3,380, with resistance at $3,465. Domestically, key levels are seen at Rs 99,000 for support and Rs 1,01,450 as resistance. Given the recent sharp rally and heightened volatility driven by escalating geopolitical tensions, it is advisable to adopt a wait-and-watch approach before taking new positions.”