Gold prices scale new all-time high today only to retreat later: Can precious yellow-metal sustain its gains?

Gold prices in Monday's session (June 16, 2025) continued to scale new high only to see profit booking later. At around 12:20 pm, gold August futures on the MCX traded lower by 0.49 per cent or Rs 491 at Rs 99,785 per 10 gm. However, in early trade, gold prices logged a new high of Rs 1,01,078 per 10 gm.

The precious yellow metal is climbing new highs as intensifying war between Iran and Israel - emerged as a fresh cataylist, triggering risk-off sentiment and the demand for safe-haven bullion.

International gold rates

In the international markets, gold is near a 2-month high as investors flocked to the safe-haven amid rising Israel-Iran tensions- stoking fears of a broader conflict in the region.

Gold in the futures market traded with a cut of 0.45 per cent at $3,437.25, while in the spot market it traded at $3,419.4, down 0.39 per cent.

Factors that triggered gold to new all-time high today

Escalating Israel-Iran tensions: Rising clash between the two nations are adding to the gains in precious metal, helping it move past Rs 1 lakh levels.

Surge in crude prices: Crude prices have surged sharply over the past week and now have extended gains. So, as crude accounts to be the major input cost for the global economy, gold prices see an uptrend being a hedge against inflation.

Global equities see sell-off: As global  equities see pressure in the backdrop of geo-poltical tensions, risk-off sentiment has taken over- fuelling demand for the safe haven gold.