Gold crosses ₹1L/10 gm amid growing tensions
The Israel and Iran tensions have pushed up
gold prices
to ₹ 99,170 per 10 gm on Friday at the retail level, up by ₹2,200 per 10 gm from Thursday. If a consumer buys
gold
now, he will have to shell out ₹1,02,145 per 10 gm, which includes a 3% GST .
The Israel-Iran conflict has inflated the safe haven demand for the yellow metal. Besides, the fear of global recession and the US-China tariff situation have been slowly fuelling the rally in gold prices in recent months.
Israel launched a wide-ranging attack on Iran's nuclear sites and military leadership overnight, forcing Iran to retaliate on Friday.
"Renewed tensions in the Middle East, particularly with Israel reportedly attacking nuclear sites in Iran, have triggered a sharp rally in gold prices. This geopolitical escalation has driven domestic gold prices above ₹1,00,000 per 10 gm and pushed Comex gold towards $3425 per troy ounce," said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.
"Any retaliatory action could heighten the risk sentiment further, keeping prices elevated. However, if diplomatic efforts or international intervention led to de-escalation, gold could quickly retreat to the ₹98,000-₹97,000 range," Trivedi said.
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