Gold prices surged near two-month highs after Israel launched a major military strike on Iran, targeting key nuclear and military facilities. Spot gold rose to $3,417.10 while August futures climbed to $3,436.90, driven by safe-haven demand as geopolitical tensions spiked. Iran retaliated with over 100 drones toward Israel, further escalating fears. Meanwhile, softer U.S. inflation data boosted expectations of a Fed rate cut, supporting gold’s momentum. The combination of Middle East conflict and easing inflation is pushing investors toward gold as a hedge. Gold remains in focus as global uncertainty deepens.

Gold prices have been on an upward trajectory in mid-June 2025, driven by escalating geopolitical tensions and anticipations surrounding the upcoming U.S. Federal Reserve policy decision. On Sunday (June 15), domestic gold futures closed above Rs 1,00,000 per 10 grams, marking a significant milestone. This surge reflects heightened investor interest amid global uncertainties.

The prices continued their ascent, with 24-carat gold trading at new record highs across major Indian cities on Monday (June 16). For instance, in Bhopal, gold prices surpassed ₹1,00,000 per 10 grams, while silver reached ₹1.06 lakh per kilogram.

The recent escalation in the Israel-Iran conflict has significantly impacted global markets. Israeli airstrikes on Iran’s nuclear facilities on June 13 led to a sharp rise in oil prices and increased demand for safe-haven assets like gold. The conflict has also contributed to broader market volatility, further boosting gold’s appeal as a secure investment.

Analysts predict that gold prices may continue to rise, potentially reaching ₹1.05 lakh per 10 grams on the Multi Commodity Exchange (MCX). This projection is based on sustained geopolitical tensions and the Federal Reserve’s upcoming policy stance. The market is closely watching the Fed’s decision on June 18, as any indications of dovish policies could further support gold’s upward momentum.