Gold rates at lifetime high: Indian gold futures above ₹1 lakh/10 gm on MCX on escalating Israel-Iran tensions

Gold prices on Friday, June 13, climbed to their peak in over a month as investors swayed towards safe-haven assets due to rising tensions between Israel and Iran.

The yellow metal jumped over ₹1,00,000 per 10 gm in the domestic market, gearing up for a possible weekly gain. Indian gold futures (August contracts) on the MCX (Multi Commodity Exchange of India) jumped 2% to a lifetime high of 100,403 rupees per 10 grams in early trade. The last traded price (LTP) on the MCX for gold futures (August contracts) is ₹1,00,145 per 10 gm.

Geopolitical tensions are on the rise after Israel attacked Iran’s nuclear sites, escalating the long-standing conflict between the countries into a full-blown war.

Spot gold rose 1.3% to $3,428.28 per ounce (as of 0134 GMT), after reaching its highest point since May 7 on Thursday, a Reuters report said on Friday. Bullion has climbed over 3.5% so far this week, the report added. US gold futures jumped 1.4% to $3,449.60.

"This latest spike in hostilities in the Middle East has taken the focus off trade negotiations for now, with investors making a play towards safe-haven assets in response," the Reuters report said quoting Tim Waterer, chief market analyst at KCM Trade.

Waterer added, "Gold surged past resistance around the $3,400 on news of the airstrikes, and further upside could be in-store should the escalation continue.”

Gold prices have been on a bull run since the start of this year. Gold rates have climbed more than 25% as compared to the prices recorded on January 1, 2025.

As gold is a safe haven asset, its prices rise when other assets turn risky. Factors including market volatility, geopolitical tensions, global instability, increase in inflation and fears of recession impact gold prices.