India Gold Surges Past ₹1,44,500 as Iran Conflict Fuels Rate Fears
Indian gold and silver futures surged past ₹1,44,500 and ₹2,26,350 respectively as escalating US-Iran military strikes pushed Brent crude above $92, reviving inflation concerns ahead of a critical Federal Reserve meeting.
MCX gold August futures rose more than 1% to trade above ₹1,44,500 per 10 grams on Wednesday, while September silver contracts climbed over 1% to surpass ₹2,26,350 per kilogram. The rally extends a strong previous session where gold gained over 1% and silver jumped nearly 2.5%.
The price action is driven by a sharp escalation in Middle East tensions. The US military conducted an 11th night of strikes on Iran, with President Donald Trump signalling an imminent push near Pickaxe Mountain, a fortified site close to Iran's primary nuclear enrichment facilities. Iran warned that striking this location would widen the war and trigger broader attacks on US regional allies.
This geopolitical premium spilled into energy markets, with Brent crude jumping over 1% to trade above $92 a barrel. The surge in oil prices is reviving concerns that global inflation could spike substantially, forcing the US central bank to maintain or aggressively tighten monetary policy. Investors are now looking ahead to the Federal Reserve's July 28-29 meeting for guidance on interest rates.
Normally, a stronger US dollar and elevated Treasury yields weigh on non-yielding bullion. However, Ravi Singh, Chief Research Officer at Master Capital Services, noted that renewed fears over global energy supplies near the Strait of Hormuz and the Black Sea are overriding these typical headwinds. The safe-haven bid is keeping precious metals supported despite macroeconomic factors that would usually depress prices.
Technically, the market is watching key inflection points. Singh highlighted that MCX gold found a floor near ₹1,40,000, turning the short-term trend neutral. He noted that the 21-day exponential moving average near ₹1,44,200 is the immediate resistance level.
Manoj Kumar Jain of Prithvifinmart Commodity Research pegged immediate gold support at ₹1,42,000 and resistance at ₹1,44,000, while silver has support at ₹2,21,600 and resistance at ₹2,26,000. Jain advised traders to trail stop-losses on long positions, suggesting profit booking in gold between ₹1,44,400 and ₹1,45,500, and in silver between ₹2,27,000 and ₹2,30,000.
