Gold soars, crude spikes, rupee dips, stocks fall as West Asia tensions tighten

The Sensex and Nifty posted weekly losses of 1.1-1.3 per cent.
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Gold prices rose to record highs, crude spiked, rupee fell below 86 to the dollar and Indian government securities firmed up as escalating tensions between Iran and Israel kept investors jittery.

Israel’s overnight attacks on Iran, targeting its nuclear facilities, sent crude prices soaring over 14 per cent, the highest since January. Prices cooled off later, but were still up over 7 per cent, set for the biggest daily rise since March 2022.

Israel continued with a fresh wave of attacks even as US President Donald Trump urged Iran to agree to a deal with respect to its nuclear weapons programme. He warned of more brutal attacks by Israel.

Indian equities extended their losing streak for the second consecutive session on Friday, with the Sensex plunging 573.38 points or 0.70 per cent to close at 81,118.60, and the Nifty 50 dropped 169.60 points or 0.68 per cent to 24,718.60. Both the indices posted weekly losses of 1.1-1.3 per cent.

In the domestic spot market, gold prices rallied by ₹1,603 per 10 grams or two per cent on Friday to a new high of Rs 99,058, as investors turned to the traditional safe haven asset. On the Multi Commodity Exchange (MCX), gold for August delivery breached the ₹1 lakh per 10 gm mark to touch a fresh high of ₹1,00,403 per 10 grams. However, it ended the first session at ₹98,392 for August futures.

Globally, gold is trading within striking distance of the record $3,500.10 an ounce seen in April.

“The initial reaction was largely driven by a sharp rise in crude oil prices due to geopolitical tensions in the Middle East. However, a moderation in CPI inflation helped limit the downside,” said Ajit Mishra, Senior Vice-President Research at Religare Broking.

Rupee tumbles as crude oil prices spike up

The Rupee came under pressure, posting its biggest single day fall in more than month to close below 86 to the Dollar mark, as crude oil prices spiked in the wake of Israel launching a barrage of attacks on Iran’s nuclear and military facilities. Central bank intervention, however, pulled the Rupee up from the intraday low of 86.20 per Dollar.

Rising crude prices will make crude oil imports costly, which in turn will have a depreciating effect on the Rupee. India’s crude oil import dependency is to the tune of 90 per cent.

Yield on the new 10-year benchmark Government Security rose 2 basis points to close at 6.30 per cent from previous close of 6.28 per cent on concerns that spike in global crude oil prices could have an inflationary effect on the economy.

The Dow fell more than 495 points in early trades and the S&P declined around 1 per cent.

Israel attacked nuclear sites in Iran, its missile factories and also killed several commanders in its efforts to prevent Tehran from developing atomic weapons. Tehran has declared Israel’s strikes on its facilities as a declaration of war, while Israel’s Prime Minister Benjamin Netanyahu that the US was aware of the attacks.

According to report by Reuters, Iran told the United Nations Security Council in a letter that that it will respond decisively and proportionally to Israel’s “unlawful” and “cowardly” acts. The UNSC is due to meet later on Friday.

It also quoted Iran’s Nournews as saying that 78 people had been killed and 329 injured in Israeli attacks on residential areas in Tehran.

Published on June 13, 2025