Gold prices in India increased on Tuesday, driven by escalating military tensions between the United States and Iran. This geopolitical uncertainty, along with a weaker US dollar, has led to heightened fears over potential disruptions in oil supply, boosting demand for gold as a safe-haven asset.
Reuters reported that traffic through the Strait of Hormuz has slowed after Iran threatened retaliation against further US military action. MCX is India’s principal commodity derivatives exchange and provides the platform for trading gold and other bullion contracts. The price of 24-karat gold in India’s retail market rose 0.52%, or ₹ 790, to around ₹ 1,54,080 per 10 grams at about 9:10 am on September 8. Brent crude was trading near $97 a barrel, while concerns over prolonged shipping disruptions have kept oil markets volatile. On the Multi Commodity Exchange ( MCX ), gold futures were trading around ₹ 1,53,727 per 10 grams, up 0.47%, at around 10:48 am, according to the figures available on Tuesday. The retail figures supplied for September 8 show Chennai recording the highest 24-karat gold price among the cities listed, while New Delhi has the lowest. Spot gold rose 0.6% to $4,432.79 an ounce on Tuesday, with the dollar index declining 0.3%.
