Gold Prices Soar to ₹1,01,540 Amid Middle East Tensions, Traders Brace for More Volatility

Gold prices in India skyrocketed on June 13, 2025, jumping ₹2,200 in a single day and settling at an eye-watering ₹1,01,540 per 10 grams, nearly touching April’s record high of ₹1,01,600. The surge, which rippled through roadside paan stalls to brokerage floors, was widely attributed to escalating tensions in the Middle East following Israel’s Operation Rising Lion.

The geopolitical jolt — which reportedly killed 18 people, including senior Iranian military officials — sent investors scrambling for safe-haven assets. Gold, traditionally seen as a refuge during global uncertainty, immediately became the focal point for market watchers and everyday buyers alike.

MCX Futures Cross ₹1 Lakh Mark

On the Multi Commodity Exchange (MCX), gold futures opened at ₹99,500 and breached the six-figure mark by afternoon, peaking at ₹1,00,403. Retail gold prices reflected the trend, with 24-carat gold at ₹9,917 per gram and 22-carat at ₹9,679, according to the India Bullion and Jewellers Association (IBJA).

Silver mirrored gold’s trajectory, surging to ₹1,06,450 per kilogram, buoyed by a ₹565 intraday gain. Internationally, COMEX gold soared past $3,425 per ounce, reflecting widespread global anxiety and risk-aversion.

Rupee Weakens, Imports Costlier

Adding to domestic pressure, the rupee weakened by 55 paise, crossing ₹86 per U.S. dollar, which in turn inflated the cost of gold imports. Jewellers across the country responded by updating their price boards in near real-time, adjusting to the currency-driven premium.

Markets React: Sensex Tumbles

The ripple effects of the Middle East conflict were also felt in the stock market. The Sensex dropped nearly 1,000 points, as risk-off sentiment gripped investors. Even seasoned traders found themselves rattled by the volatility during morning sessions.

Experts Sound Caution

Market experts warned that further escalation in the Middle East, particularly from Iran, could push gold prices higher in the coming days.
Mrinesh Jain, Director of Bombay’s Metal Hub, remarked, “When missiles are talked about, money runs towards gold. A stronger dollar only adds fuel to the fire.”

Colin Shah, Managing Director at Kama Jewellery, pegged the near-term MCX range at ₹1,00,200 to ₹1,00,500, while Jateen Trivedi of LKP Securities projected gains of ₹1,500 to ₹1,900 per 10 grams. He identified support at ₹98,000 and resistance near ₹1,02,500.

Amod Khanorkar, an analyst at Infomerics, cautioned that extended military conflict, especially if coupled with rising crude oil prices, could expand these price bands and drive further market instability.

A Market Holding Its Breath

With Iran yet to respond militarily, markets remain on edge. Investors continue to seek the safety of gold, a trend likely to persist until conflict subsides or diplomatic efforts gain traction.

As one dealer aptly put it, “Until the shooting stops, gold won’t lose its shine.”