Here’s the latest on gold markets and key drivers behind the recent surge:

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Market Snapshot 📈

Safe‑haven surge: Gold prices are near two-month highs amid escalating Middle East tensions – notably Israel’s strike on Iran – triggering a flight to bullion .

Price levels: Spot gold rose ~1.3–1.5% Friday to around $3,427/oz, with U.S. futures trading near $3,448 . According to Trading Economics, gold reached $3,421.23 on June 13 .

Record highs in India: MCX gold contracts in India crossed ₹100,000 per 10 g for the first time—breaching ₹100,403—driven by dollar weakness and geopolitical worries .

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What’s Fueling the Rally?

1. Geopolitical Tensions

Investor demand for safety surged after Israel struck Iranian nuclear facilities, instigating concerns of wider conflict .

Commentary suggests gold could climb toward $3,500/oz if the situation escalates further .

2. U.S. Dollar & Fed Expectations

The U.S. dollar hit a two-month low, making gold priced in USD more attractive .

Softer U.S. inflation and labor data have fueled expectations of Federal Reserve rate cuts by September, supporting the non-yielding metal .

3. Central Bank Demand

Gold overtook the euro to become the world’s second-largest reserve asset, representing 20% of global reserves behind only the USD .

Central banks (notably India, China, Turkey, Poland) have consistently purchased over 1,000 tonnes annually, underpinning longer-term bullish sentiment .

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Analyst Perspectives

FXStreet notes gold consolidating near $3,445, with technical support around $3,400 and resistance toward $3,500 .

CBS News reports conditions favor another surge, possibly reaching new record levels if inflation or geopolitical risks persist .

Financial Express highlights the potential for another breakout above $3,425, targeting the old peak of $3,500 amid ongoing tensions .

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Summary Table

Theme Status

Gold Price ~$3,420–3,445/oz (spot/futures); ~₹100,000/10 g in India

Drivers Geopolitical tensions, weak USD, dovish Fed, central bank demand.