With topping $3,400 an ounce again on geopolitical jitters, the precious metal futures on the topped ₹1 lakh per 10 gm on Friday. The trigger for the rise was Israel’s air raids on Iran, killing its security chief.
In the Mumbai spot market, the yellow metal increased by over ₹1,000 per 10 gm from Thursday’s close to ₹97,164 in the morning session. In the global market. On MCX, after touching a high of ₹1,00,403 per 10 gm, for delivery in August ruled at ₹99,841 at 1300 hrs IST.
In the global market, gold was last quoted at $3,416.07 an ounce, up 0.89 per cent for the day. This week, gold has gained over 3 per cent, while the precious metal’s rise since the beginning of this year is over 30 per cent.
Renisha Chainani, Head of Research at Augmont, said gold surged beyond $3,400, as investors sought refuge from growing economic uncertainties and geopolitical concerns.
Much-awaited move
Colin Shah, MD, Kama Jewelry, said gold topping ₹1 lakh on MCX was on the much-awaited lines given the latest development in rising geopolitical tensions, and weakening of the Indian rupee.
“The uncertainties drive up the demand of gold as a safe investment haven as compared to other asset classes. The price trend is going to face some resistance, which will keep gold below ₹1 lakh in the short-term,” he said.
Chainani said gold prices have broke out thier resistance of $3425 and prices could now head towards the previous high of $3,500 in the near term.
Shah said prices may see some correction due to bouts of volatility. “We anticipate prices to hover in the range of ₹1,00,200 -1,00,500 on MCX, subject to international economic influences,” he said.