Gold price rises amid escalating Middle East tensions
April 15 (IANS) Gold price rose on the Multi Commodity Exchange (MCX) on Monday tracking the global market for the precious metal which firmed up amid the worsening geopolitical crisis in the Middle East region following Iran’s drone and missile attack on Israel.Gold futures, maturing on June 5, 2024, stood at Rs 72,302 per 10 grams on the MCX at 11:30 a.m., an increase of Rs 541 over Friday’s close of Rs 71,843.
In the international market, spot gold price is trading around $2,360 per troy ounce, which is around 0.70 per cent higher from its Friday close.
Gold prices have been driven up by the safe haven demand by investors in the wake of uncertainty caused by rising geopolitical tensions. Central banks of various countries have also been buying the precious metal in large quantities.
Gold prices have now risen by around 17 per cent in India over the last two months from around Rs 62,000 per 10 grams range to levels around Rs 72,700.
The price of 24-carat gold in Delhi on Monday was around Rs 72,690 per 10 grams while in Mumbai it was hovering around Rs 72,540. The gold price was the highest in Chennai at Rs 74,790 per 10 grams while in Kolkata and Bengaluru it was hovering around Rs 72,540.
That’s absolutely true! The price of gold has been on the rise recently, fueled in part by the escalating tensions in the Middle East. Here’s why:
- Safe-haven asset:Â Gold is considered a safe-haven asset, meaning investors flock to it during times of uncertainty or instability. When tensions rise in regions like the Middle East, there’s a fear of wider conflict or economic disruptions. This drives investors towards gold, pushing up the price.
- Recent events:Â Recent events like Iran’s attack on Israel and the potential for retaliation have heightened anxieties. This has caused investors to seek the security of gold.
- Record highs:Â As of April 16, 2024, gold prices are hovering near record highs, nearing the $2,500 mark per ounce.
It’s important to note that gold prices can be volatile and can fluctuate based on various factors. However, the current situation in the Middle East is definitely a contributing factor to the recent rise.