Gold Surges on Comex Amid Rising Tensions in West Asia, Lags at Home

Gold prices experienced gains in the international market as tensions in West Asia intensified after the US launched an attack on Iran's three major nuclear sites. While analysts were expecting the Israel-Iran conflict to take a breather, the recent entry of the US in the West Asia rift has dimmed all hopes around a prospective de-escalation. This is partly the reason behind yellow metal's decent surge on Comex.

"Gold traded in a positive range between $3,350–$3,380 in Comex as US airstrikes on Iranian nuclear sites heightened geopolitical risks. The escalation has triggered safe-haven buying, with participants closely watching for further developments. Any retaliatory actions or military responses could lead to a sharp spike in gold prices," said Jateen Trivedi, VP research analyst-commodity and currency, LKP Securities.

However, if the conflict eases with no further triggers of escalation in the West Asia rift, strong profit-booking might grip the overall sentiment, as per analysts. In such a case, immediate support lies at $3,290 in Comex, said Trivedi.

As for now, Iran has already responded with retaliatory attacks. Ali Akbar Velayati, advisor to Iran’s Supreme Leader Ayatollah Ali Khamenei, reportedly said that, “any country in the region or elsewhere that is used by American forces to strike Iran will be considered a legitimate target for our armed forces.” 

Gold Prices on MCX

At homes, gold prices witnessed a diverging trend and declined. On Monday, the rate of 24-carat gold stood at ₹1,00,840 (per 10 grams) in the capital, as per GoodReturns. "In the domestic market (MCX), gold is holding firm above ₹98,000, which acts as a key support, while resistance is seen around ₹99,500–₹99,750," Trivedi said.

However, volatility continues to dominate the overall investor sentiment as any trigger on the geopolitical front is bound to impact the commodity market, and thus yellow commodity's price levels.