Gold price soars to a lifetime high amid rising geopolitical tensions

MUMBAI — Gold futures on India’s Multi Commodity Exchange (MCX) rose to INR 72,423 per 10 grams on Friday for June 5 delivery, tracking the rally in the international market which saw the price of the precious metal soar to a new lifetime high at $2,395.29 per ounce.

Gold futures on MCX recorded an increase of INR 779 per 10 grams which is 1.09 per cent above the previous trading session’s closing price of INR 71,644.

There was some variation in the retail gold prices in major cities across the country with the price in Delhi hovering at around INR 72,380 per 10 grams for 24-carat gold, while in Mumbai, the price was 72,230. The price of gold was the highest in Chennai at INR 73,370 per 10 grams while it was hovering around INR 72,230 in Bengaluru and Kolkata.

Gold prices continue to peak in the international market as central banks of various countries are resorting to large purchases of the yellow metal since it is seen as a safe-haven asset amid escalating geopolitical tensions in the Middle East and the Russia-Ukraine war.

Gold prices have shot up by around 15 per cent this year and the firm trend was also reflected in US gold futures which rose 1.2 per cent to $2,401.80 on Friday.

India is the second largest importer of gold after China and rising international prices have a direct bearing on domestic prices.