New Delhi, June 16 -- Gold prices today surged to a historic high in the domestic futures market, as rising geopolitical tensions between Israel and Iran reignited global risk aversion. On the Multi Commodity Exchange (MCX), gold August futures briefly touched an unprecedented level of Rs.1,01,078 per 10 grams before stabilising around Rs.1,00,290 by mid-morning on June 16.

While the latest flare-up in the Middle East-marked by fresh hostilities between Israel and Iran-lent strength to global safe-haven demand, gains were tempered by the strengthening US dollar and cautious investor sentiment ahead of the US Federal Reserve's policy decision scheduled for June 18.

Israel has launched renewed military action against Iran, escalating fear...