Gold price today: Rates hit record high on escalating Israel-Iran tensions; what should be your strategy for MCX Gold?

Gold price today: Gold rates hit a record high of ₹1,01,078 in the domestic futures market Monday (June 16) morning as escalating tensions between Israel and Iran supported safe-haven demand. However, the dollar's rise and tepid spot market demand capped gains for the yellow metal, with investors' focus shifting to the US Fed policy outcome this week on June 18. MCX Gold August 5 contracts traded flat at ₹1,00290 per 10 grams around 10:20 AM.

Israel and Iran have launched fresh attacks on each other, raising concerns that the conflict in the Middle East could spiral into a major geopolitical crisis.

US President Donald Trump believes that a peace agreement between Israel and Iran is possible, but the two sides may need to ‘fight it out’ before they are ready to reach a peace deal. He further asserted that the US could directly get involved in the conflict.

Apart from geopolitical tensions, a key trigger for gold prices is the upcoming US Fed policy meeting. Despite easing inflation, the Fed may not cut rates on June 18 due to persisting uncertainty about the impact of the US tariff policy.

The US headline consumer price index (CPI) for May increased at a softer-than-expected pace of 0.1 per cent month-on-month and was 2.4 per cent year-on-year. Core CPI increased 0.1 per cent month-on-month and 2.8 per cent year-on-year.

"Gold prices are climbing as tensions between Israel and Iran persist, with no clear resolution in sight. Geopolitical uncertainty remains a key driver for bullion in the near term," said Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures.

"While any signs of de-escalation could prompt profit-taking at elevated levels, ongoing concerns over global conflicts, trade issues, and the upcoming Federal Reserve policy meeting are likely to keep prices from falling sharply. However, the current focus is entirely on oil prices due to the geopolitical tension. This may sideline gold for a short duration," Kamboj added.

Experts unveil strategy for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile and suggests avoiding short-selling in precious metals.

"We expect gold and silver prices to remain volatile this week. We suggest avoiding short selling in gold and silver until any ceasefire news from the Israel-Iran war," said Jain.

According to Jain, gold has support at $3,420-3,388, while resistance at $3,480-3,510 per troy ounce and silver has support at $36-35.70, while resistance is at $36.66-37.00 per troy ounce in today’s session.

MCX Gold has support at ₹99,650-99,100 and resistance at ₹1,01,100-1,01,800, while silver has support at ₹1,05,800-1,05,000 and resistance at ₹1,07,200-1,08,000.

"Gold buying range is ₹99,600-99,100 while resistance for profit booking is ₹1,01,100-1,01,800 and silver buying range is ₹1,05,000-1,04,000 while resistance for profit booking is ₹1,07,200-1,08,000. Trade cautiously and according to given levels," said Jain.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold may retest its lifetime high soon, and silver is expected to track its movement. A depreciating rupee could further boost domestic bullion prices.

"Gold has support at $3,415-3,385 while resistance is at $3,458-3,470. Silver has support at $35.90-35.60 while resistance is at $36.45-36.65," said Kalantri.

"In INR terms, gold has support at ₹99,620-99,390 while resistance is at ₹1,00,650-1,00,940. Silver has support at ₹1,05,550-1,04,750 and resistance is at ₹1,06,300-1,06,950," said Kalantri.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.