As of 02:46 GMT, spot gold was trading 0.3% higher at $3,442.09 an ounce.
US gold futures also advanced by 0.3% to $3,461.90 an ounce.
In India, gold crossed the ₹1 lakh mark per 10 grams.
Prices stood at ₹10,151 per gram for 24-karat gold, ₹9,305 for 22-karat, and ₹7,614 for 18-karat gold. This translates to nearly ₹1.01 lakh for 10 grams of 24-karat gold, as per Goodreturns data.
Geopolitical tensions drive demand
“Gold prices are climbing as tensions between Israel and Iran persist, with no clear resolution in sight,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association.
She noted that while some profit-taking is possible at current levels, geopolitical risks and the upcoming US Fed meeting will likely keep prices elevated.
Fresh strikes by Israel and Iran on Sunday (June 15), which resulted in civilian casualties, have intensified fears of a larger regional war.
“It’s the joint political risk premium that’s rising,” explained Kelvin Wong, Senior Market Analyst at OANDA. “We have a clear break above $3,400 an ounce now, with resistance seen at $3,500 an ounce. The uptrend remains intact.”
Adding to the global risk-off sentiment, US President Donald Trump said that sometimes countries need to “fight it out” before reaching a deal — dampening hopes of quick de-escalation.
Domestic and global outlook
Rahul Kalantri, VP Commodities at Mehta Equities, expects gold to find support near $3,380 an ounce in global markets, with resistance at $3,465 an ounce.
In the Indian market, key support is seen at ₹99,000 per 10 grams and resistance at ₹1,01,450 per 10 grams.
Amod Khanorkar, Chief Rating Officer at Infomerics Ratings, pointed out that gold remains a classic safe-haven play. “Geopolitical conflict always pushes investors to gold. For India, crude price volatility adds another layer of complexity to inflation and credit outlooks.”
Focus shifts to Fed policy
Investors are now eyeing the US Federal Reserve’s decision on June 18. Markets expect the Fed to keep interest rates unchanged but hope for clarity on future cuts.
Recent inflation data has strengthened expectations of rate reductions, possibly starting in September.
NS Ramaswamy, Head of Commodities at Ventura, predicts COMEX gold could break above $3,509 an ounce in the short term.
“With support at $3,400 an ounce and $3,345 an ounce, gold is likely to test $3,540 an ounce,” he said.
He also noted that central banks globally are expected to purchase over 1,000 metric tons of gold in 2025 — the fourth year of heavy accumulation — reinforcing gold’s long-term bullish trend.
Investment strategy
Despite the rally, experts recommend caution. “Adopt a wait-and-watch approach before entering fresh positions,” said Kalantri.
Short-term volatility is likely to persist amid geopolitical developments and the Fed’s policy stance.
–With Reuters inputs
