In a dramatic response to escalating tensions in West Asia, gold prices have skyrocketed, reaching near-record levels of $2,418/ounce in international markets (Comex Spot) this Friday. This surge has propelled the price of 24K gold in local markets to unprecedented highs, surpassing Rs 74,000/10gm excluding GST.
During the trading day, 24K gold spot prices in Delhi were quoted at Rs 74,100, while in Mumbai and Hyderabad, the prices climbed even higher, reigning at Rs 74,200.
Despite the international market’s uptick, the Multi Commodity Exchange of India (MCX) for June futures depicted a different scenario, with prices pegged at Rs 72,898. This figure falls short of the all-time high of Rs 73,958 recorded on April 12, 2024, which coincided with international spot prices reaching a peak of $2,432 following Iran’s retaliatory strike against Israel.
“Reports of Israel’s military action against Iranian targets have heightened concerns over a potential regional conflict, which in turn has fueled the ascent of gold prices. The domestic market has witnessed prices soaring to new record highs. The anticipated timing of a policy shift by the Federal Reserve has been largely overlooked by the gold market, which has continued its upward trajectory amid growing geopolitical risks,” explained Saumil Gandhi from HDFC Securities.
Gandhi further stated, “We anticipate that the ongoing geopolitical uncertainty will maintain a bullish trend for gold in the short term. Comex Spot Gold is currently finding support at the $2,365-2,340 range.”