On Monday 16 June, gold prices on the domestic futures market (MCX) created a new history. The price of gold delivery gold reached Rs 1,01,078 per 10 grams in the first hour of the day. However, it later got a little softening and it stabilized around Rs 1,00,290. The boom was seen mainly due to the increasing military tension between Israel and Iran, increasing the demand for safe investment worldwide.
Why the price of gold rose?
Israel has taken fresh military action against Iran, causing the threat of widespread war across West Asia. The US has also warned of potential intervention and Israel has declared emergency. At this time, investors around the world feel that this war may affect the stock market in the coming time. This is the reason that investors are investing their money in gold called safe investment. This is not the first time that gold has increased due to increasing tension between the two countries. Earlier, gold caught up in India Pakistan tension, Russia Ukraine Tension and the ongoing tariff war between the US-China.
On the other hand, the US dollar strengthening and the policy meeting of the US Federal Reserve on 18 June has kept investors a little cautious. But despite the positive of the US’s fresh inflation data (CPI), there is a danger of breakdown of nuclear dialogue between Iran and the US, which may further speed up gold.
What will happen next?
Gold resistance on COMEX is believed to be $ 3,476. If the current boom continues, it can also go up to $ 3,540. Gold is getting support at Rs 98,900 on MCX. If the stress increases, the gold rate later can reach Rs 1,02,000 again.
