Gold prices climbed sharply as tensions in the Middle East drove demand for safe assets. Softer U.S. inflation also boosted hopes for rate cuts, supporting gold's rally above $3,400.

This rise is also lifting the commodities sector, which is headed for its second consecutive weekly gain, with the Bloomberg Commodity Total Return Index ( DJP) up 3.3% this month and year-to-date returns in U.S. dollar exceeding 9%.

Gold prices in India have soared to record levels, surpassing ₹1 lakh per 10 grams with a 28% rise in just one year. This surge is driven by escalating geopolitical tensions in the Middle East, inflation worries, and central bank purchases but these very factors also make this a risky time to buy.

UK markets have struggled today as global assets have sold-off amid concerns about conflict in the Middle East. The FTSE 100, while dragged lower by airlines and miners, fared better than other European indices thanks to a lift from oil producers BP and Shell as the price of the asset spiked on the tension.

The MCX gold rate opened at Rs 99,500, marking a rise of Rs 1,108, or 1.12%, from its previous close of Rs 98,392

Stocks rose and oil prices retreated Monday as fears of a wider Middle East conflict eased even as Israel and Iran pounded each other with missiles for a fourth day.