CHENNAI: 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.
Geopolitical factors
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.
Market outlook
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.
Investors are advised to monitor geopolitical developments and central bank policies closely. While gold presents a compelling investment opportunity amid current uncertainties, it's essential to consider potential risks, including market corrections and policy shifts. Diversifying investment portfolios and consulting with financial advisors can help mitigate risks associated with gold investments.