Gold prices cross ₹1 lakh mark: Can they rise further? Experts share short-term targets
Gold prices today surged to a historic high in the domestic futures market, as rising geopolitical tensions between Israel and Iran reignited global risk aversion. On the Multi Commodity Exchange (MCX), gold August futures briefly touched an unprecedented level of ₹ 1,01,078 per 10 grams before stabilising around ₹ 1,00,290 by mid-morning on June 16.
While the latest flare-up in the Middle East—marked by fresh hostilities between Israel and Iran—lent strength to global safe-haven demand, gains were tempered by the strengthening US dollar and cautious investor sentiment ahead of the US Federal Reserve's policy decision scheduled for June 18.
Israel has launched renewed military action against Iran, escalating fears of an all-out regional conflict, which, according to Manav Modi, Senior Analyst at Motilal Oswal Financial Services, has pushed investors towards safe-haven assets, with domestic gold hovering around ₹ 1 lakh and international prices near $3,500 an ounce.
The US has warned of potential involvement, and Israel has declared a state of emergency. This geopolitical uncertainty has sharply increased the risk premium across markets. Modi added that US inflation data has come in softer than expected, yet the Producer Price Index (PPI) slightly exceeded estimates, reflecting a mixed macroeconomic environment.
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, said that the renewed tensions have overshadowed the recent positive US CPI report, reducing the chances of an imminent Fed rate cut. She warned that any collapse in nuclear negotiations between Iran and the US could trigger another spike in gold prices.
Additionally, investor attention is also fixed on the upcoming US Federal Reserve policy decision. Despite cooling inflation, the Fed is expected to maintain a cautious stance due to uncertainties surrounding US tariff policies and global trade dynamics.
NS Ramaswamy, Head of the Commodity Desk at Ventura Securities, noted that gold is benefiting from "risk-off" sentiment.
He added that global central banks are on track to accumulate more than 1,000 metric tons of gold in 2025—marking the fourth consecutive year of robust official sector buying, underscoring gold's role as a strategic hedge.
Colin Shah, Managing Director of Kama Jewelry, pointed out that the weakening rupee is further fueling domestic gold prices. Although prices crossed ₹ 1 lakh, Shah expects resistance in the short term and anticipates some correction amid volatility. He projects gold to trade between ₹ 1,00,200 and ₹ 1,00,500 in the near term, with medium-term direction contingent on global developments.
From a technical standpoint, Ventura's Ramaswamy sees key resistance for COMEX gold at $3,476 and forecasts a potential surge to $3,540 if current momentum sustains. On MCX, August gold futures are supported at ₹ 98,900, with potential upside targets around ₹ 1,02,000 in the short term, provided geopolitical risks persist.
In international markets, support levels are seen at $3,400 and $3,345, while short-term bullish targets remain intact as long as safe-haven flows dominate market sentiment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
15 minutes ago
- Hans India
BJP Highlights 11 Years of Modi's Governance in Gadwal's Ward no. 36
Gadwal: As part of a nationwide campaign to showcase the achievements of Prime Minister Narendra Modi's 11 years in office, the Bharatiya Janata Party (BJP) conducted a 'Rachabanda' (public interaction) program today in Ward 36 of Gadwal town under the leadership of BJP Town President Rajaka Jayashree. The event was graced by BJP candidate Baligera Shiva Reddy as the chief guest, who addressed the gathering and elaborated on key initiatives undertaken by the central government for the welfare of the poor and the overall development of the nation. Key Highlights of the Speech: Baligera Shiva Reddy highlighted that: The central government under PM Modi has been providing free ration rice, especially during difficult times like the monsoon disaster season. The distribution of three months' ration at once demonstrates the foresight and commitment of the Prime Minister towards the poor. He emphasized the importance of health cards, another central initiative aimed at accessible healthcare for economically weaker sections. Under the Swachh Bharat Mission, over 12 crore toilets have been constructed, significantly improving sanitation infrastructure across the country, especially in rural and remote areas. Farmers are now able to access subsidized fertilizers easily, ensuring better agricultural productivity and reduced financial burden. Speaking on national security, he pointed out that the Modi government has prioritized defense by allocating significant funds to the defense sector, enhancing the country's preparedness and safety. Shiva Reddy underlined the Modi government's dedication to national security and welfare, calling it a government of vision, integrity, and strong leadership. Environmental Initiative: Following the public interaction, participants took part in a tree plantation drive within the ward as part of their commitment to environmental sustainability. Dignitaries Present: The program saw the participation of several BJP leaders and supporters, including: Bandala Venkata Ramulu, BJP State Council Member Devdas, President of BJP District OBC Morcha Senior BJP leaders Dabbuletti Narasimha, Delhiwala Krishna, Mohan Reddy, and Narasimha Shetty Residents of Ward 36 and local BJP cadre The event served as both a political outreach and a public awareness campaign, reinforcing BJP's focus on grassroots engagement and promoting Prime Minister Modi's development agenda.
Time of India
an hour ago
- Time of India
CPI(ML) to form federation for retail traders & vendors
Patna: The CPI(ML) has decided to organise retail traders and vendors in various cities in the state and form a state-level federation to raise their demands with the govt. "This initiative was taken by the party's Ara MP Sudama Prasad. He earlier formed a district-level body in Bhojpur and has now decided to expand it to the state level," said a CPI(ML) functionary. On Sunday, Prasad held a meeting in Patna attended by around 200 retail traders and vendors from 24 districts. According to a party communiqué, he told participants that a strong organisation was needed to take up their problems with the govt and administration. "First, the demonetisation of Rs 500 and Rs 1,000 notes in 2016 and then the Covid pandemic broke the backbone of retailers and vendors," Prasad said. He cited rising prices, reduced purchasing power, unemployment and the spread of online shopping as key challenges. He also pointed to increased criminal activity and insecurity in marketplaces. A state-level meeting will be held in Patna next month to formally launch the Vyavsaee Mahasangh (state traders' federation). The CPI(ML) began efforts to organise traders after the pandemic. "The first unit was formed in Ara. Now, the state body will be set up with a focus on demanding a traders' protection commission," the functionary said.
India Today
an hour ago
- India Today
PM Modi gifts Andhra-made silver clutch purse to Cyprus First Lady
Prime Minister Narendra Modi, who was on an official visit to Cyprus, has gifted a Silver Clutch Purse to Philippa Karsera, the First Lady of Cyprus, Philippa purse from Andhra Pradesh combines traditional metal work with modern style. It is made using the repouss technique and has detailed floral designs inspired by temple and royal art. advertisementThe purse contains a semi-precious stone at the centre, adding a touch of elegance. Once used mainly for special occasions, this purse is now a stylish accessory or collector's item, showing off India's rich craft tradition in a modern Minister Narendra Modi also gifted a Kashmiri Silk Carpet to the President of Cyprus, Nikos particular piece, in deep red with fawn and red borders, features traditional vine and geometric motifs. It showcases the prized two-tone effect, appearing to change colours based on the viewing angle and lighting, creating the illusion of two different carpets in one. Prime Minister Modi has expressed his gratitude to Cyprus's President for showing him the historic city of Nicosia. Taking to X, he wrote, "Gratitude to President Christodoulides for showing me parts of the very historic city of Nicosia. We look forward to closer people-to-people linkages with Cyprus!"advertisementDuring his visit, PM Modi was conferred the highest honour of Cyprus, the Grand Cross of the Order Macarius III. In his acceptance speech, the PM dedicated the award to the 1.4 billion people of India, their aspirations, and the country's culture of brotherhood. He emphasised that the honour reflects the strong friendship between India and Cyprus, and their shared values. Following his visit to Cyprus, Prime Minister Modi left for Canada, where he will attend the 51st G7 Summit in Kananaskis, inputs from ANIMust Watch
