Gold, Prices
Business News: Gold prices on India’s Multi Commodity Exchange (MCX) achieved a historic breakthrough, surpassing ₹1 lakh per 10 grams for the first time, closing at ₹1,00,288 after a 2% surge. This unprecedented rally, driven by global unrest and strong domestic demand, has electrified the bullion market, with 24-carat gold reaching ₹1,01,600 per 10 grams in major cities. The milestone underscores gold’s enduring appeal as a safe-haven asset amid turbulent times.
The dramatic spike in gold prices was triggered by escalating tensions in the Middle East, particularly Israel’s airstrikes on Iran’s nuclear facilities on June 13, 2025. The closure of Iranian airspace and fears of retaliatory strikes sent global markets into a frenzy, pushing spot gold to $3,428 per ounce. Investors worldwide flocked to gold as a hedge against uncertainty, while a weakened Indian rupee, trading at 84.92 against the dollar, amplified domestic prices. The combination of global volatility and currency depreciation propelled MCX gold to its historic peak.
India’s bullion market is witnessing a surge in buying ahead of the festive season, with Diwali and wedding purchases driving demand. Jewelers in Mumbai and Delhi reported a 15% increase in gold sales, with 24-carat gold priced at ₹1,01,600 and 22-carat at ₹93,100 per 10 grams. Consumers, undeterred by record prices, view gold as a secure investment amid economic uncertainty. Silver also rose, reaching ₹1,15,000 per kilogram, reflecting broad bullish sentiment in precious metals.
The MCX milestone has sparked optimism among investors, with gold exchange-traded funds (ETFs) seeing inflows. However, analysts warn that sustained high prices could strain retail buyers. The Reserve Bank of India is monitoring the rupee’s slide, which may impact import costs, as India relies heavily on gold imports.
In conclusion, MCX gold crossing ₹1 lakh marks a defining moment for India’s bullion market. Fueled by global crises and festive fervor, the boom highlights gold’s resilience, though rising prices pose challenges for consumers and policymakers alike.
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