Gold Futures Cross Rs 1-Lakh Mark for First Time on MCX Amid Israel-Iran Tensions

Heightened tensions in the Middle East boosted the safe-haven appeal of gold as its futures contracts crossed the crucial Rs 1 lakh mark for the first time ever. The August contract of gold futures touched its lifetime high of Rs 1,00,403 per 10 gram on the Multi Commodity Exchange, surging 2% from its previous close.

The surge in gold futures follows Israel’s airstrikes against Iran's nuclear programme and military targets in the early hours of Friday. Israeli Prime Minister Benjamin Netanyahu has declared a state of emergency, saying that the operation 'Rising Lion' will continue for as many days it takes to remove 'Iran's threat to Israel's survival', reports said.

According to reports, Hossein Salami, the Iran Revolutionary Guards chief, and Gen. Mohammad Bagheri, chief of staff, were killed in the Israeli attack. Separately, the Israeli military claimed that Iran launched about 100 drones towards Israel in retaliation.

“Gold prices are expected to test 100000-100500. One can buy at 99400 with a stop loss of 99000,” Nirmal Bang Commodity Research said in its daily report.  On COMEX, the yellow metal touched its intraday high by rising nearly 2% from its previous close.

Another safe haven asset, silver futures surged up to 1% on June 13 to Rs 1,06,799 per kilogram on the MCX. Recently, the grey metal witnessed a robust surge in price levels. Investors are also expecting a cut in interest rates by the Federal Reserve, due to stabilised inflation figure.

While the demand for safer assets eased following positive signals from US-China trade talks, they have seen an uptick in prices lately as geopolitical tensions remain high. Before Israeli strikes on Iran, Us President Donald Trump warned of increasing Iranian aggression in nuclear discussions.

Beyond these factors, depreciation in the rupee also shot up the gold prices. The local currency breached the 86-mark against the dollar at open, falling 55 paise.