Gold prices edged higher on the Multi Commodity Exchange (MCX) on Monday as investors turned to safe-haven assets amid escalating tensions between the United States and Iran. Continued military exchanges in the Middle East and concerns over their potential impact on global energy markets supported demand for precious metals. Market participants are also closely monitoring the US Federal Reserve's policy outlook as inflation concerns continue to influence investor sentiment.

At 9:04 am, the MCX Gold August futures contract rose 0.23 percent to Rs 1,41,102 per 10 grams. Meanwhile, the MCX Silver September futures contract gained 1.36 percent, trading at Rs 2,19,349 per kilogram. The rise in domestic precious metal prices reflected both international market trends and growing demand for safe-haven investments during a period of heightened geopolitical uncertainty.

In the international market, spot gold traded near $4,010 per ounce, remaining relatively steady after declining around 2 percent during the previous week. Investors weighed the impact of continued US-Iran military hostilities against expectations that the US Federal Reserve could maintain or raise interest rates to address persistent inflationary pressures. Higher interest rates typically reduce the appeal of non-yielding assets such as gold, creating competing influences on prices.

Also Read: MCX Gold Drops 0.58% to Rs 1,41,370 Per 10 Grams

Oil prices also remained elevated as the conflict in the Middle East intensified. Brent crude climbed above $90 per barrel following reports of attacks on key energy infrastructure in Kuwait and threats to commercial shipping passing through the Strait of Hormuz, one of the world's most strategically important oil transit routes. Rising crude prices have added to inflation concerns and increased uncertainty across global financial markets.

Iran has stated that the ceasefire between Tehran and Washington has effectively collapsed, raising fears of prolonged disruptions to global energy supplies. Continued instability in the region has encouraged investors to shift funds toward traditionally safer assets such as gold while remaining cautious about broader market volatility. Developments in the conflict are expected to remain a major driver of commodity prices in the coming days.

Analysts believe precious metals are likely to remain sensitive to both geopolitical developments and monetary policy signals. Any further escalation in the Middle East could provide additional support to gold prices, while changes in expectations regarding US interest rates may influence the metal's longer-term direction. Investors will continue to monitor global economic data, central bank commentary and geopolitical events for further clues on the outlook for gold and other commodities.

Also Read: Gold, Silver Prices Fall on MCX as US-Iran Tensions Escalate