Gold prices firm up amid rising Iran-Israel tensions

Gold futures, maturing on June 5, 2024, stood at Rs 72,813 per 10 grams on the MCX, up Rs 536 or 0.74 per cent from the previous day’s close of Rs 72,277.

New Delhi: Gold prices recorded an increase on the Multi Commodity Exchange (MCX) on Tuesday as escalating tensions between Iran and Israel have driven up the demand for the safe-haven asset.

Gold futures, maturing on June 5, 2024, stood at Rs 72,813 per 10 grams on the MCX, up Rs 536 or 0.74 per cent from the previous day’s close of Rs 72,277.

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In the international market, gold prices were up 0.16 per cent at $2,386.8 an ounce in New York which was close to the lifetime high touched earlier.

Retail gold prices in India crossed the Rs 73,000 mark per 10 grams of 24-carat gold. The gold price in Delhi hovered around Rs 73,310 while in Mumbai it was around Rs 73,160 per 10 grams.

“Primarily, the price trend of the yellow metal breaching new highs, in the backdrop of the recent Iran-Israel conflict has led to investors withdrawing from riskier avenues and reinvesting in gold. Given the scenario of looming escalations between the countries in conflict and the response by G7,” said Colin Shah, MD, Kama Jewelry.

“On the trade front, jewellery exports from India will get further sluggish owing to higher crude prices and tension, leading to a poor sentiment in the end-user class in international markets,” he added.

Navneet Damani of Motilal Oswal Financial said, the gold and dollar index are now moving in tandem, highlighting that market focus currently is more on geopolitical tensions and less on interest rate changes.”