Gold prices are surging, nearing record highs, fueled by escalating tensions between Iran and Israel. Intensified clashes over the weekend have stoked fears of a broader regional conflict, prompting investors to seek refuge in safe-haven assets like gold.
Spot gold gained 0.3% to $3,442.09 an ounce, after hitting its highest level since April 22 earlier in the session. U.S. gold futures advanced 0.3% to $3,461.90. This surge marks a fourth consecutive session of gains for the precious metal. The rise in gold prices reflects a growing "political risk premium" due to the ongoing conflict, according to Kelvin Wong, a senior market analyst at OANDA. He noted a clear break above $3,400, suggesting the short-term uptrend remains intact, with resistance anticipated around $3,500.
Renewed geopolitical concerns in the Middle East following reported Israeli attacks on Iranian targets are bolstering gold prices. Iranian officials have asserted they would "respond firmly to any adventurism" from Israel, further escalating safe-haven demand.
In addition to geopolitical factors, expectations of a Federal Reserve rate cut are also contributing to gold's upward trajectory. Traders are pricing in an increasing probability of a rate cut by September, which would further lift interest-bearing assets like gold. The U.S. Federal Reserve is expected to hold its policy rate steady at its meeting on Wednesday.
City-Wise Gold Rates in India
In India, gold prices have also seen a significant rise, mirroring the global trend.
Here's a snapshot of gold rates in major metro cities as of June 15, 2025 (rates per 10 grams for 24 Carat Gold):
These rates are indicative and exclude GST, TCS, and other levies.
Other Indian cities are showing the following rates per 10 grams for 24 Carat Gold:
Factors Influencing Gold Prices in India:
Several factors influence gold prices in India, including:
Gold is traditionally considered a safe-haven asset during geopolitical and economic uncertainty, making it an attractive investment option during these times. Market analysts suggest closely monitoring the $3,500 resistance level, with the potential for further gains if this level is breached.
