Key Highlights
- Gold rises for fourth straight session near two‑month high as Israel–Iran conflict fuels safe‑haven demand.
- Spot gold nears $3,450/oz, strengthened by geopolitical risk and easing Fed rate‑cut expectations.
Gold prices have recently risen, fueled by ongoing tensions between Israel and Iran. On Monday, domestic gold futures increased marginally, closing above Rs 1,00,000 per 10 grams. This increase occurs as investors' desire for gold as a safe haven is fueled by the geopolitical climate. The June 18 policy decision by the US Federal Reserve is another event that has the market's attention.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that "the uncertainty caused by the Israel-Iran conflict has resulted in a mild risk-off sentiment in global markets.". He observed that, while gold remains stable due to safe-haven buying, there is no significant panic in equity markets. This suggests that, while gold is sought as a safety measure, other markets are relatively stable.
Investors considering entering the gold market should take a strategic approach. The current resistance levels for gold are close to Rs 1,00,650-1,00,940, while the support is between Rs 99,620 and Rs 99,390. Further price increases could follow a breakout above these levels, especially if the rupee declines or geopolitical tensions increase. With the possibility of short-term gains, silver is likewise following the gold trend.
Also Read: Indel Money Eyes Rs 4,000 Cr AUM by FY26 on Strong Gold Loan Demand
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association, stated, "Gold prices are rising as tensions between Israel and Iran persist, with no clear resolution in sight." He said that although oil's current market dominance may momentarily eclipse gold, geopolitical uncertainty is likely to keep gold prices high.
The direction of gold prices in the future will also be influenced by the Federal Reserve's next meeting. In order to generate more interest in gold, investors are watching for indications of a dovish stance. A decline in the US dollar, brought on by market forces or rate reductions, might also draw investors' attention back to bullion.
SHOULD YOU PURCHASE GOLD NOW OR WAIT?
For long-term investors, gold remains a strong hedge against global instability. However, if you are looking for short-term gains, timing is critical. Monitor oil prices, follow Fed signals, and keep an eye on the Middle East map.
Gold has a tendency to shine brightest when there is uncertainty. And right now, uncertainty appears to be in plentiful supply.
