Gold Prices Cross ₹1 Lakh on MCX for First Time Amid Geopolitical Tensions; Silver Also Rallies
Mumbai | June 13, 2025 — Gold prices in India surged past the ₹1 lakh mark per 10 grams on the Multi Commodity Exchange (MCX) on Friday for the first time in history, driven by escalating geopolitical tensions in the Middle East and a weakening Indian Rupee. The sharp rally in gold was mirrored by gains in silver, marking a dramatic day for precious metals in both domestic and global markets.
Record Surge in Gold Prices
Gold opened at ₹99,500 per 10 grams, up ₹1,108 or 1.12% from its previous close of ₹98,392. The bullish momentum pushed the price further up to ₹1,00,403, breaching the psychological ₹1 lakh level for the first time ever on MCX.
By 12:44 p.m., gold was trading slightly lower at ₹99,673, still up 1.30% intraday.
Retail prices also surged in tandem:
- 22-carat gold: ₹9,679 per gram
- 24-carat gold: ₹9,917 per gram
Silver Follows Suit
Silver prices also rallied sharply:
- Opened at: ₹1,06,450 per kg (up ₹565 or 0.53%)
- Intraday high: ₹1,06,799 per kg
- Trading at 12:45 p.m.: ₹1,06,328 per kg (up 0.42%)
Global Market Reflection
This rally is not isolated. In the international market:
- Spot gold rose 1.3% to $3,428.28/oz, its highest level since May 7
- US gold futures climbed 1.4% to $3,449.60/oz
- Gold has gained over 3.5% this week globally
Silver, too, saw bullish action globally, aided by both safe-haven demand and industrial recovery signals.
What’s Driving the Rally?
1. Israel-Iran Tensions
Reports of Israeli airstrikes on Iranian military and nuclear facilities have sparked global concerns over a broader conflict in the Middle East.
Such geopolitical instability traditionally sends investors flocking to safe-haven assets like gold, boosting demand and prices.
2. Weakening Indian Rupee
A depreciating rupee makes gold imports costlier, further supporting domestic price increases.
3. Global Economic Uncertainty
Concerns over global inflation, potential interest rate pauses by major central banks, and fragile supply chains are making precious metals more attractive to investors.
Expert View: Colin Shah, Kama Jewelry
“The gold prices in India hitting an all-time high is on expected lines given the latest developments in geopolitical tensions and the weakening of the Indian Rupee,” said Colin Shah, MD of Kama Jewelry.
He added that while some short-term resistance may arise, gold prices are likely to hover between ₹1,00,200 and ₹1,00,500 on MCX in the coming sessions, depending on the global economic and political climate.
What to Expect Going Forward?
Market analysts suggest:
- If tensions in the Middle East escalate further, gold may consolidate above ₹1 lakh, making it a new normal in Indian bullion markets.
- Central bank actions (especially US Fed and ECB), inflation data, and currency volatility will continue to influence the next leg of price movements.
- Retail investors may flock to sovereign gold bonds, digital gold, and ETFs to hedge against market volatility.
For Investors: What You Should Know
- Buy on dips strategy might suit cautious investors
- Diversification across gold forms (physical, digital, paper) is advised
- Stay updated on geopolitical developments and rupee trends
Helpline for Retail Buyers
For real-time updates and retail pricing, refer to:
- India Bullion and Jewellers Association (IBJA) – www.ibjarates.com
- MCX India – www.mcxindia.com
Bottom Line:
Gold crossing ₹1 lakh per 10 grams is not just a technical milestone—it’s a signal of rising global uncertainty and a shift in investor sentiment. Whether this becomes the new normal will depend on how geopolitics and macroeconomics unfold in the coming weeks.