Gold prices today hit record high, soaring at 2,000 per 10 grams in just four days.
Gold prices in India soared to record highs today as the Iran-US conflict escalated after the Persian Gulf nation fired missiles at several bases housing US troops in Iraq. Investors are going to turn their attention to the US response. On MCX, February’s gold futures rose by 1.5 per cent or almost 630 to a record high of 41290 per 10 grams. Silver futures on MCX jumped 1.4% or almost 700 to 48,785 per kg. Gold prices are rising in times of political and economic instability.
In India, gold is beginning to scorch this year in the midst of growing tensions in the Middle East and the weakening of the rope against the US dollar, Since reporting a 25% rise in 2019. The rupee traded today at 72.01 against the US dollar in early trade. In four days, the price of gold is about 2,000 per 10 grams. In global markets, gold prices rose 2% to reach the main $1,600 mark, a nearly seven-year peak, as investors sought refuge in safe-haven metal in the midst of the worsening Iran-US crisis. Spot gold rates have risen by more than 2 percent to as much as $1,610.90. Among other precious metals, silver prices jumped 1.2 percent to $18.60 per ounce, while platinum increased 0.3 percent to $973.95. Elsewhere, palladium hit a fresh all-time high of $2,056.01 an ounce.
The Middle East crisis erupted again after Iran attacked military facilities in Iraq, hosting American troops in its first retaliatory attempt to kill a U.S. top general last week. It was not immediately clear whether there were casualties or major damage as a result of the attacks. The U.S. reported the attack with President Trump tweeting: “Missiles fired from Iran at two military bases located in Iraq. The assessment of casualties and losses is now underway. So far, so strong! We have the most powerful and well-equipped military anywhere in the world, by far! I will make a statement tomorrow morning.”Apart from the geopolitical tensions in the Middle East, gold is likely to move further from the US monthly non-farm payroll data due on Friday, says Abhishek Bansal, Chairman of the ABans Group of Companies. The US Federal Reserve will also use payroll data to determine the policy direction in 2020, he said.Analysts say that gold prices will remain supported in the middle of the Middle East crisis. Reflecting investor sentiment, the holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose by 0.10 per cent to 896.18 tonnes, on Monday, compared to Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to 31 December, according to SMC Global Securities Ltd.
